President Donald Trump’s 2027 budget proposal calls for cutting $204.5 million in discretionary awards from the Community Development Financial Institutions Fund.
Details: The president’s budget, a nonbinding recommendation to Congress, said the cuts will refocus CDFI Fund awards “to expand access to capital, finance infrastructure, and bolster Main Street business development in rural America.”
ICBA View: ICBA has persistently worked to ensure full funding for the CDFI Fund amid efforts to cut its resources, citing the important role of CDFIs in supporting economic development in rural and underserved communities.
ICBA Advocacy:
-
The Consolidated Appropriations Act (H.R. 7148) signed into law in February allocates $324 million for the CDFI Fund this year, the same amount as 2025.
-
Following advocacy from ICBA and other groups, members of Congress in December strongly supported CDFIs in budget discussions.
-
More than 100 congressional Republicans last year pushed back on a decision to fire CDFI Fund employees during the government shutdown.
-
The Treasury Department responded that all CDFI Fund reductions in force were rescinded as part of November's legislation reopening the government.
More: A recent Independent Banker magazine article details how CDFIs and minority depository institutions weather potential funding cuts and regulatory shifts and continue to help underserved communities.