WASHINGTON–Both the House and the Senate have passed legislation that appropriates $324 million for Treasury’s Community Development Financial Institution (CDFI) Fund for FY26. The question now: When will CDFI CUs see any funds not just this year, but from the funds that were allocated in 2025?
The action is Congress is welcome news for CDFI credit unions, as the Trump administration in its first year in office has consistently sought to zero-out money for the CDFI Fund. And in more good news for CUs, the amount the House has budgeted is an increase over the $276.6 million it had earlier allocated for the CDFI Fund.
The credit union trade groups have been actively advocating in Congress for the funding, which is used to underwrite numerous projects at the community lending, such as affordable housing, homeownership, small business growth, and more.
Credit unions make up the largest group of certified CDFIs with 444 of 1,375 as of October of 2025.
“It’s great to see Congress step in and this part is important, it’s critical for our communities, it’s critical for supporting the economy and underserved areas,” said Greg Mesack, senior vice president of advocacy with America’s Credit Unions. “
The Big Question
But as welcome as all that news is, there are still questions around when CDFIs might see the funds—and that includes funds from FY 2025, which have yet to be disbursed, as the CU Daily has reported.
Mesack said America’s Credit Unions is hopeful Congress will be able to pass the legislation before the end of January. But funds, which require applications and approval by Treasury, typically are provided to the winning financial institutions until much later in the year. But credit unions that were approved during FY25 did not receive any of that funding last year as the administration sought to eliminate it.
Ongoing Conversations
James Akin, head of regulatory advocacy with America’s Credit Unions said his understanding is that representatives of Treasury, the CDFI Fund, and the Office of Management and Budget are currently in conversations about getting those funds apportioned.
“There were ongoing conversations about any additional requirements that might be needed to be put in place before those go out,” Akin said.
