WASHINGTON–A month after releasing what’s known as the “skinny budget” for 2026 that included a near total elimination of the CDFI Fund amid other cuts, an appended budget has been released by the White House that continues to provide no funding for the CDFI Fund and outlines other budget cuts, including to NCUA’s Community Development Revolving Loan Fund.
The lengthy budget appendix released by the Trump administration on Friday is approximately 1,200 pages long and calls for more than $160 billion in cuts (22%) to nondefense discretionary spending, while requesting a boost to defense dollars.
As the CU Daily reported earlier here, the proposed skinny budget recommended eliminating CDFI Fund discretionary awards for a total of $291 million, which would effectively eliminate the CDFI Fund’s programs, including Financial Assistance (FA) and Technical Assistance (TA) programming, and maintain only administrative funds for oversight and closeout of prior awards, maintaining CDFI certification and administration of the CDFI Bond Guarantee Program and New Markets Tax Credits.
More than 400 credit unions are CDFIs and many regularly apply for and receive grants from the fund.
Numerous Programs Effected
Carrie Hunt, chief advocacy officer with America’s Credit Unions, which has met with Treasury and other officials since the planned elimination of the CDFI Fund was announced and requested the funds be restored, said the newly released budget appendix recommends numerous programs, including the small dollar loan program, programs for Native Americans and Hawaiian, the Native American/Hawaiian programs, rural financial assistance programs (the USDA administers more than 50, including the Healthy Foods Financing Initiative), the Bank Enterprise Award Program and more be rolled up and folded into the Rural Financial Assistance Program.
There are also planned cuts to rental programs that HUD administers, to custom multifamily housing programs and to other programs focused on the elderly and disabled, Hunt noted.
Cuts to NCUA Fund
Finally, closer to credit unions, the budget “zeroes out” NCUA’s Community Development Revolving Loan Fund (CDRLF) which currently has $4 million budgeted for technical assistance grants to low-income designated credit unions until Sept. 30 of this year. Hunt said those grants will remain available.
Hunt said the trade group plans to have new discussions with the Office of Management and Budget over how those plans will evolve.
“While these are very technical issues it is incredibly important for us, as the devil is in the details, and we are constantly advocating to them to make sure credit unions have as much access as possible to funding and capital to serve as many members as possible,” said Hunt.
The White House Influence
Administration budgets have traditionally been little more than recommendations by the time they reach Capitol Hill. Few know that reality better than Jim Nussle, the president and CEO of America’s Credit Unions, who not only served in the House but is also the former director of the Office of Management and Budget (OMB).
But President Trump has more sway over Congress than just about any other president, which could give the White House budget more weight in among members of Congress, meaning CUs’ ability to lobby and get the CDFI funds restored more challenging.
Nussle said he agrees.
“I think it does carry more weight and we’re taking that very seriously,” said Nussle in response to a question from the CU Daily. “I do think they’re paying more attention in Appropriations (committee), on the Budget Committee, and are probably keying off that. I’ll say parenthetically that I doubt the president has reflected specifically on proposals in the minutia as much as maybe the budget director.
Implications for GOP
“It’s interesting because I can remember back to our very first meeting with the president’s economic team…right after (Trump) was sworn in and we specifically talked to them about not only the economic implications of some of the inner city and more urban-based programs and how (cuts) could affect them, but we were also pretty explicit with them about the political ramifications,” Nussle continued. “They’re obviously trying to reach out to and they sense an opportunity in reaching new voters who have not necessarily leaned Republican in the past, and I think this would be a mistake. If they forget the public-private partnership that these funds allow for. That was the message I brought to them and we will continue to make that, plus others that are more data-based on the impact that that these can have in in those important communities.”
Defense Council Responds
The Defense CU Council is also raising objections to the CDFI cuts.
“The proposed elimination of the Community Development Financial Institutions (CDFI) 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 – the CDFI Fund is not a handout—it is a strategic investment in national economic stability and financial stability,” said DCUC Chief Advocacy Officer Jason Stverak. “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.
“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,” Stverak continued. “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.
‘Underscores Its Importance’
“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,” Stverak said.
