WASHINGTON–When it comes to news related to the Community Development Financial Institution (CDFI) Fund, it’s all relative, including what could quality as some “good news” this week.
The House Appropriations FSGG Subcommittee is marking up a bill with $275–$276 million proposed for CDFI funding—down from last year’s $330 million, but far better than the zero dollars the Trump administration has penciled in for the CDFI program.
Both America’s Credit Unions and the Defense Credit Union Council are pushing for full restoration of the funds.
‘Capital is King’
Carrie Hunt, chief advocacy officer with America’s CUs, said during a call with the media, “Capital is king and we need to be able to put that money to work.”
Hunt said the trade group has met with Sens. Mike Crapo (R-ID) and Elizabeth Warner (D-MA), who are the co-chairs of the CDFI Caucus in the Senate, and has also met with Treasury.
“Hopefully, we will see some movement there,” said Hunt.
Letters are Sent
The developments come as America’s Credit Unions has sent a CDFI-focused letter to the House Appropriations Financial Services and General Government Subcommittee in anticipation of their bill mark up.
“The CDFI Fund has consistently demonstrated its capacity to serve as a catalyst for private sector investment, with every dollar of public funding leveraged to unlock at least eight dollars in private capital,” America’s Credit Unions President and CEO Jim Nussle said in the letter. “This return on investment is even more impressive with credit union CDFIs, with each dollar awarded resulting in a return of twelve dollars in community lending,
“While we are pleased to see that the Subcommittee mark supports continuing the CDFI Fund at an annual level of $276.6 million for FY2026, we would urge the Subcommittee to amend the draft and restore funding to the FY2025 level of $324 million as you consider the bill,” the letter adds.
DCUC Letter
The Defense CU Council has sent a letter of its own to the committee on the funding, which can be found here.
The DCUC said it will continue pushing for full funding “given the program’s demonstrated impact in underserved communities.”
CU Strategic Planning Issues Statement
“CU Strategic Planning works to consistently play a strong role in maintaining full funding for FA and TA grants, as well as for the CDFI Fund,” said Mike Beall, CXO with CU Planning, in a statement. “This work includes the entire appropriations process, and keeping strong bipartisan communication with appropriators as a top priority.”
Acting Director of CDFI Fund is Named
The developments come at the same time Treasury has named Dietrich Douglas as acting director of the CDFI Fund, following the June resignation of Pravina Raghavan, who had been director.
Douglas is legal counsel for the CDFI Fund, a role he has held since January of 2023. He previously served with the U.S. Department of Health and Human Services.
