House-Proposed FY26 CDFI Fund Appropriation Higher than President’s Budget Request, Decrease from Current Funding Level
Lily Jin, Associate, Public Policy, OFN
While the House bill continues to fund CDFI Fund programs on par with the committee’s FY25 proposed appropriation, it remains below OFN’s FY26 goal of level funding at $324 million.
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On July 20, the House Financial Services and General Government (FSGG) Subcommittee released its Fiscal Year 2026 appropriations bill, proposing a 7.9% cut from spending levels enacted in FY25. While the allocated $276.6 million for the CDFI Fund is more than the $134 million requested in the president’s budget proposal, it is still $47.4 million below the current FY 2025 appropriation.
The proposed number is level with last year’s House proposal and continues to fund the majority of core CDFI Fund programs instead of replacing them with the White House-proposed ‘Rural Financial Award Program’ This possibly signals business as usual for appropriators in the House majority. The Healthy Food Financing Initiative and the Economic Mobility Corps still face elimination in the House’s proposal.
The bill also provides $974,778,000 for the Small Business Administration (SBA) — a 25% cut from the FY 2025 enacted level. Despite the president’s budget request to zero out entrepreneurial development programs, the subcommittee bill mostly maintained FY 2025 enacted level funding. More specifically, the subcommittee proposed $41 million in funding for Microloan Technical Assistance, $5 million for the Native American Outreach Program, $27 million for the Women Business Centers, and $18.5 million for Veterans Outreach. The subcommittee also increased the 7(a) loan program limit by $10 billion, which is carved out solely for American manufacturers. Additionally, SBA appropriation includes two administrative provisions that prohibit the SBA from funding climate change initiatives and requiring small businesses to report data on services provided to minorities and women.
In past fiscal years, the Senate has typically proposed higher funding levels than the House, with final appropriations landing at a compromise between the two. A full House Appropriations Committee meeting on the budget and Senate FSGG markup will likely be scheduled in September after the two chambers return from August recess. The appropriations cycle could also see further delays from a breakdown in bipartisan negotiations as a result of last week’s rescissions package passage. Additionally, indications of further clawbacks down the line is eroding trust between the parties and raising the likelihood of a government shutdown.
OFN has met with nearly all House and Senate Appropriations Committee members on the importance of building upon all existing CDFI Fund programs and maintaining level funding of $324 million. We will continue to engage as the appropriations cycle unfolds and need your voice as well.
Use OFN’s Policy Action Center to tell your Members of Congress why the CDFI Fund is essential to your community!
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