Inclusiv Statement on White House OMB Budget Proposal Attempt to Withhold FY 2025 CDFI Awards

Following the previously released “skinny budget,” the Trump Administration has published supplemental details on the President’s Fiscal Year 26 Discretionary Budget Request. Notably, in addition to slashing $291 million in the proposed CDFI Fund budget, the supplement reflects an intent to withhold $251 million that was already Congressionally appropriated for the CDFI Fund for Fiscal Year 25.  

This $251 million includes FY 25 CDFI Financial Assistance (FA) and Technical Assistance (TA) awards, Native American CDFI Awards (NACA), the AmeriCorps CDFI Economic Mobility Corps, the Bank Enterprise Awards (BEA), Healthy Food Financing Initiative (HFFI), and Small Dollar Loan Program (SDL). Hundreds of applications have already been submitted for some of these programs, leaving CDFIs uncertain about when or if they will be able to receive this critical support to meet their communities’ demand for affordable financial products and services.  

In FY 24, the CDFI Fund awarded just 24% of the total amount of Financial Assistance (FA) awards requested, demonstrating a clear gap in program demand and available funding. Delaying or withholding FY 25 funds will only widen this gap—limiting CDFIs’ capacity to expand affordable homeownership, strengthen small businesses, and create economic opportunity in low-income communities across the nation.  

Since the CDFI Fund was established more than 30 years ago, CDFIs have proven their effectiveness as a market-based strategy to promote access to capital and catalyze economic growth, leveraging $8 of private investment for every $1 in public funding received. And these dollars are going toward the communities that need them most—102 CDFI credit unions serve persistent poverty counties, and 353 CDFI credit unions serve rural counties, which include some of the most underbanked and economically distressed areas in the country. With continued FA and TA funding, CDFI credit unions can scale their existing work to increase lending volumes, expand affordable financial products, and service new areas with unmet need. And through the Economic Mobility Corps program, CDFI credit unions can provide critical financial counseling and education to individuals working toward financial independence and stability.  

Deploying the appropriated FY 25 CDFI funds is an impactful and accountable investment in local economic development and financial resilience that will generate lasting impact as the funds are leveraged and reinvested in communities over time. CDFI credit unions are prepared to put these resources to work to ensure that Americans everywhere have access to the tools they need to achieve their financial goals.