WASHINGTON– President Trump’s FY2027 budget proposal includes several provisions impacting credit unions, including changes to community development funding (see related story), small business lending programs, and investments in fraud prevention and national security, America's Credit Unions noted.
As CUToday.info reported, the submitted budget includes a $204.5 million reduction to the Community Development Financial Institutions Fund, significantly decreased from the $324 million level maintained in bipartisan FY2026 appropriations, as well as new administrative fees on lenders participating in Small Business Administration (SBA) programs. At the same time, the budget proposes a $30-million investment to establish a national fraud division at the Department of Justice and an additional $15.2 million for Treasury’s Office of Terrorism and Financial Intelligence to strengthen efforts to combat fraud and illicit financial activity.
“President Trump’s FY2027 budget proposal outlines a number of significant policy changes that will impact credit unions and the communities they serve," said Scott Simpson, president/CEO of Americas Credit Unions. “We appreciate the Administration’s focus on combating financial fraud and strengthening national security. Investing in efforts to prevent fraud, combat illicit financial activity, and protect consumers is critical, and credit unions stand ready to be strong partners in that work.
“At the same time, several elements of the proposal raise concerns for credit unions and the 145 million Americans they support every day," Simpson continued. "The proposed reduction to the CDFI Fund would significantly scale back a proven tool for expanding access to affordable financial services, particularly in underserved communities like rural America. Additionally, the introduction of new administrative fees on lenders participating in Small Business Administration programs risks increasing costs and limiting access to capital for small businesses."
Simpson emphasized credit unions play a vital role in supporting local economies, providing safe and affordable financial services, and helping small businesses grow.
"Policies that reduce investment in community development or increase the cost of lending could make it more difficult for institutions to support Main Street America," he said. "We look forward to working with Congress and the Administration to ensure the final budget supports access to affordable financial services, protects consumers, and strengthens the communities credit unions serve.”
As in previous budget cycles, the President’s request represents the beginning of the appropriations process, with final funding levels determined by Congress. In FY2026, Congress maintained CDFI Fund support at $324 million despite similar proposed reductions.