OFN Advocates to Preserve the CDFI Fund Following Expected Cuts In the President’s Budget Proposal
Lily Jin, Associate, Public Policy, OFN
The budget proposal would significantly reduce funding for the CDFI Fund and eliminate many key programs. We must urge Congress to support level funding for the CDFI Fund in FY 2026 appropriations.
Read time: 3 minutes
On May 2, the Trump Administration released its fiscal year (FY) 2026 “skinny budget” request which proposed significantly reduced funding for the CDFI Fund, among cuts across the federal government. OFN’s full statement on the budget request can be found here.
However, the budget acknowledges the value of continuing CDFI certification, the New Markets Tax Credit, and Bond Guarantee Programs. It also proposes a new CDFI Fund ‘Rural Financial Award Program’ with $100 million to support CDFIs that have 60% of their loans and investment directed towards rural areas to spur rural economic development. While OFN is dedicated to investing in rural communities and welcomes more resources to do so, it is important that the FY 2026 budget builds on, rather than replaces, the work already being done through the existing CDFI Fund programs.
“Investing in the CDFI Fund continues to be a great deal for American taxpayers, with CDFIs leveraging $8 in private capital for every $1 in public funding they receive,” said Dafina Williams, OFN’s Executive Vice President, Chief Public Policy Officer and Head of Government Affairs. “Federal investment into the CDFI Fund is an investment into the economic prosperity of Main Street America, and we look forward to continue working with Congress and the Administration to ensure that this critical funding for all communities is maintained.”
Now the action will turn to Congress. The President’s budget request does not carry the force of law and is only a recommendation to Congress, who ultimately sets the final spending levels. The House and Senate Appropriations committees will begin holding hearings in the coming weeks before drafting their bills.
In the past few months CDFIs have seen bipartisan support from Congress, and Treasury Secretary Scott Bessent stated that “CDFIs are a key component of President Trump’s commitment to supporting Main Street America in the pursuit of job growth, wealth creation, and prosperity.”
OFN is advocating for the preservation of the CDFI Fund’s programs and requesting level funding of $324 million for the CDFI Fund in FY 2026. To accomplish this, Congress needs to hear from you!
Use OFN’s Policy Action Center to urge your Members of Congress to protect the CDFI Fund and support this critical funding for FY 2026.
Save the Date
Join us from October 20-23 in Washington, D.C. for the 41st annual OFN Conference!
Stay Connected
Subscribe to receive regular updates straight to your inbox and check out our blog for the latest coverage from OFN and the CDFI industry.
Follow us on social media.
More From OFN
D.C. Restaurateur Shares Her Recipe for Success as a Woman Entrepreneur
Daniella Senior, owner of Colada Shop and client of OFN member LEDC, shares her small business journey as a woman… Read More
Arkansas CDFI Fills Financial Services Gap With Help of Local Barber College
OFN member People Trust offers innovative lending programs to support small businesses, first-time homeowners, and individuals often overlooked by traditional… Read More
OFN Member Empowers Nebraskan Communities Through Tax Education and Financial Services
In January, we celebrate Martin Luther King Jr. Day and honor his enduring legacy of justice, equity, and civil rights.… Read More