U.S. Department of the Treasury in Washington, D.C. (Photo: Diego M. Radzinschi/ALM)
Congressional leaders have earmarked $324 million for the Community Development Financial Institutions (CDFI) Fund in a Financial Services and National Security minibus appropriations package filed over the weekend, delivering a significant investment for mission-driven lenders serving low-income and underserved communities.
The funding, included in the Fiscal Year 2026 spending bill, supports a range of CDFI programs administered by the U.S. Treasury, including financial and technical assistance grants, the Native American CDFI Assistance Program, and targeted initiatives for rural, persistent poverty and economically distressed areas. CDFI-certified credit unions, which play a central role in providing affordable loans, financial counseling and small-business support, are among the primary beneficiaries.
Industry advocates said the funding level reinforces bipartisan recognition of CDFIs as a key tool for expanding access to capital where traditional financial institutions often fall short. The allocation is expected to support small-dollar lending, affordable housing financing and entrepreneurship programs, including for veterans, service members and minority-owned businesses.
While the bill does not include broader policy reforms sought by some credit union groups, the CDFI funding represents a tangible win for community-based finance. With demand for affordable credit continuing to rise amid higher costs and economic uncertainty, supporters argued the investment will help stabilize local economies and strengthen financial resilience nationwide.
The minibus package will now move through the appropriations process as lawmakers work toward final passage ahead of the FY2026 fiscal deadline.
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