House Appropriations Committee Approves $276.6 Million for CDFI Fund for FY27
Lily Jin, Senior Associate, Public Policy, OFN
The Committee maintains its funding proposal from previous years and directs all previously appropriated CDFI funding to be promptly obligated
Read time: 4 minutes
This week, the House Appropriations Committee passed its fiscal year (FY) 2027 Financial Services and General Government (FSGG) Appropriations bill, proposing $276.6 million for the CDFI Fund. The proposed level is consistent with the committee’s recommendation for previous fiscal years. While it is $157.1 million higher than the amount proposed in the President’s Budget Request, it is a $47.4 million cut from the current FY26 appropriation of $324 million.
The committee continues to fund most core CDFI Fund programs, instead of the new $100 million Rural Financial Assistance Program proposed in the President’s Budget Request. The bill also provides $500 million in guarantee authority for the CDFI Bond Guarantee Program. The White House budget proposed eliminating the program.
Notably, report language accompanying the bill directs the CDFI Fund to “obligate previously appropriated funds in an expeditious manner to ensure program continuity and effectiveness,” stating that “funding to the Office of the Secretary be withheld until all previous funds for the CDFI awards are fully obligated.” The committee also recommends that upcoming New Markets Tax Credit awards focus on areas in Appalachia impacted by floods in 2022 and 2025.
During the House Appropriations markup, several members of the committee, including Representatives Marcy Kaptur (D-OH-09), Pete Aguilar (D-CA-33), and Madeleine Dean (D-PA-04), emphasized the broad bipartisan support for CDFIs and their role in housing affordability and small business growth. The committee also agreed to an amendment sponsored by FSGG Subcommittee Chair Dave Joyce (R-OH-14) with report language directing Treasury to brief the committee within 30 days of the bill’s enactment on how the department plans to address staffing levels to support program operations.
The FSGG appropriations bill also includes funding for the Small Business Administration (SBA). The bill proposes a 22% cut to $971 million for FY27 and continues funding all Entrepreneurial Development Programs despite wholesale cuts proposed by the White House. Similar to last year, the proposal comes with two administrative provisions prohibiting SBA from funding climate change initiatives and requiring small businesses to report data on services tied to diversity metrics.
Report language for the SBA states the committee’s intent to preserve its non-credit and development programs and will monitor SBA’s support of them. It also directs SBA to expand outreach and prioritize discretionary funding for distressed counties in central Appalachia, particularly those impacted by the 2022 and 2025 flooding and tornadoes. Specifically, SBA is directed to focus efforts on communities affected by job losses tied to the decline of the coal industry, including mining, power generation and related supply chains.
What’s Next
Action on appropriations now turns to the Senate to draft their version of the FY27 FSGG bill. Historically, the Senate has recommended higher funding levels than the House, with last fiscal year’s final appropriation aligning to the Senate proposal.
While Treasury confirmed the apportionment of the remaining $289 million in FY25 funds earlier this month, appropriated FY26 funds have yet to be released to the Treasury Department by the Office of Management and Budget (OMB).
OFN is continuing to engage with Congress to preserve the current federal funding level of $324 million for the CDFI Fund in FY27 and ensure FY26 funds are obligated in a timely manner.
CDFIs and industry partners remain critical to making the case for the CDFI Fund’s impact. Now is the time to engage your elected officials and underscore how CDFIs expand economic opportunity and strengthen communities. Take action today through the OFN Policy Action Center.
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