WASHINGTON--The White House has sent Congress detailed information on its Fiscal Year 2026 budget--and it includes calling for the elimination of all existing Community Development Financial Institution (CDFI) program funding.
Earlier in the year, the White House sent Congress a "skinny budget" that had top-line spending numbers but lacked many of the details needed to craft spending bills.
America's Credit Unions and the Defense Credit Union Council have strongly opposed eliminating funding for the CDFI Fund and each have written to the Treasury Department—which oversees the CDFI Fund.
America’s Credit Unions stated it will work with Congress to ensure that the CDFI Fund is fully funded in FY2026.
"The CDFI Fund is a critical resource for our nation's struggling communities. It is a successful public-private partnership, where every dollar given to a CDFI credit union from the Treasury Department creates $12 in investment in communities that need it the most. America's Credit Unions will work with Congress to continue funding this critical program," said America's Credit Unions Chief Advocacy Officer Carrie Hunt.
In other important programs, the budget calls for eliminating new technical assistance grant funding for NCUA’s Community Development Revolving Loan Fund (CDRLF), which America’s Credit Unions said it also opposes. The CDRLF is an important source of technical assistance grants for credit unions, and America’s Credit Unions will work to ensure that funding is also provided for this program.
Also of note, the detailed budget calls for reducing funding for Small Business Administration disaster relief loan programs.
"Given the increasing nature of natural disasters in recent years, America's Credit Unions believes that these disaster loan programs are critical to helping communities recover quickly from disaster," ACU stated.
DCUC Responds
The Defense Credit Union Council noted the appropriations process is long and that it has already started an aggressive outreach program to congressional leaders to protect programs important to credit unions.'
"The proposed elimination of the Community Development Financial Institutions Fund in the FY2026 White House budget is a direct threat to the financial well-being of millions of Americans, especially military families, veterans, and underserved communities," said DCUC Chief Advocacy Officer Jason Stverak. "The CDFI Fund is not a handout—it is a strategic investment in national economic stability and financial stability."
For military families, who often face unique financial challenges due to frequent relocations and deployment-related expenses, the CDFI Fund has been instrumental in providing access to affordable financial services, Stverak said.
"Eliminating this funding would force many servicemembers to turn to predatory lenders or lose access to critical financial tools, undermining both their personal financial stability and overall military readiness," he stated. "Moreover, the CDFI Fund has a proven track record of empowering mission-driven credit unions to operate in low-income and underserved areas, including regions surrounding military installations. These institutions offer essential services such as small-dollar loans, financial education, and emergency assistance to junior enlisted servicemembers and their families—many of whom qualify as low-income under federal guidelines. The bipartisan support for the CDFI Fund underscores its importance. Eliminating it would not only stall decades of progress in financial inclusion but also jeopardize the economic stability of communities that rely on these critical services."