Trump Budget Cuts CDFI Fund by $204.5M, Credit Unions Warn of Impact
Key Takeaways
- FY2027 budget proposes changes to community development funding affecting credit unions.
- Credit unions warn the cuts will reduce access to capital and services.
- Coverage identifies seven key areas of concern for credit unions.
Budget Cuts CDFI Fund
The budget proposes a $204.5 million reduction in CDFI Fund discretionary funding.
“Special Report [](https://www”
America's Credit Unions noted credit unions generate roughly $12 in private capital for every federal dollar invested.
Nearly 900 credit union branches operate in census tracts lacking other financial institutions.
The Defense Credit Union Council called the CDFI Fund a proven program providing economic opportunity where it is needed most.
Credit Unions Warn of Community Impact
More than 70% of CDFI credit unions serve rural communities and leverage grants at least 8:1 with private capital.
The budget also proposes new administrative fees on lenders participating in SBA programs.
Credit union leaders described the overall package as a mixed bag with significant areas of concern.
Businesses Brace for SBA Fee Changes
The budget introduces administrative fees on SBA lenders, a significant departure from current practice.
“Special Report [](https://www”
Credit unions and small businesses fear the fees could increase costs and limit access to capital.
The SBA has traditionally not charged fees for 7(a) lending.
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