WASHINGTON--A bipartisan group of Senators wrote to appropriations leaders Wednesday requesting “no less than” $324 million for the Treasury’s Community Development Financial Institutions (CDFI) Fund for FY2027, America's Credit Unions reported.
The Administration’s budget proposal contains a $204.5 million cut to the fund in FY27.
The fund awards grants to certified CDFIs and was funded at $324 million in FY26. America’s Credit Unions has also called for the full amount for FY27.
The Senators’ letter highlights that since 2010, recipients of CDFI Program Financial Assistance awards have originated nearly $300 billion in loans and investments, “all in communities lacking access to traditional lending or banking institutions or experiencing widespread disinvestment.”
A $324-million appropriation in FY27 will “generate billions in new investments across America, including loans to more than 100,000 businesses, nearly 900,000 mortgage and consumer loans, an additional 45,000 affordable homes created or preserved, and thousands of loans and investments in childcare centers, business incubators, rural hospitals, and other vital facilities,” the letter says.
The legislators also note that FY25 funds have not been awarded yet (though Treasury announced the release of funds last week) and requested the Senate Appropriations Committee include language requiring the fund to publish a schedule for applications and awards.
As of Jan. 13, credit unions make up 446 of the 1,383 certified CDFIs nationwide, the largest depository institution type, ACU noted.