Trump FY26 budget proposal contains $291M reduction to CDFI Fund

President Trump’s FY2026 budget proposal eliminates Community Development Financial Institution (CDFI) Fund discretionary awards, according to the request the White House sent to Senate Appropriations Committee Chair Susan Collins (R-Maine).

The request serves as the administration’s recommendation and is an early step in the FY2026 budget process. Appropriations committees in both chambers will construct bills that eventually go through Congress and to the president’s desk.

The CDFI Fund was similarly zeroed out in Trump’s requests during his previous term, but funding was included in the final enacted budget.

Officially, the request calls for $291 million less in funding than the previous fiscal year.

“The CDFI industry has matured beyond the need for ‘seed’ money and should at this point be financially self-sustaining,” the description reads. “Remaining funding supports oversight and closeout of prior awards, maintaining CDFI certification, and support for New Markets Tax Credit administration and the zero-cost Bond Guarantee Program.”

In a statement, America’s Credit Unions said it supports full funding for the CDFI Fund, noting in previous advocacy efforts supporting the fund that credit unions generate $12 in private capital for each federal dollar awarded through the program.