The U.S. House Financial Services and General Government (FSGG) Subcommittee has proposed an appropriation of $276 million for the Community Development Financial Institutions (CDFI) Fund in its version of the FY 2026 appropriations bill.
This proposal, while $48 million less than the FY 2025 appropriation of $324 million, represents a significant improvement over the White House’s initial budget proposal of just $33 million, which would have eliminated all CDFI discretionary awards.
The news comes as a partial win for credit unions and other advocates who have been lobbying Congress to maintain current levels of CDFI funding. The House bill also notably does not include the rural program proposed by the Administration.
The bill is slated for markups by the FSGG Subcommittee and the Senate Appropriations Committee in the coming weeks. Amendments are anticipated to be held until the full Committee review, expected in September.
Advocates expressed optimism that the “CDFI movement has averted the worst-case scenario of cuts to the Fund with the strength of our combined voices.” Further updates and opportunities for engagement are expected as the appropriations process continues.
In related news, the CDFI Fund announced today that Pravina Raghavan has resigned as Director. Dietrich Douglas, formerly Legal Counsel for the Fund, has been named Acting Director.
