CDFI Fund Maintains Strong Funding and Support Amid Uncertainty

Lily Jin, Associate, Public Policy, Opportunity Finance Network

March 26, 2025 – 

An executive order puts the CDFI Fund into jeopardy just hours after Congress approved FY25 funding for the program. 

Read time: 3 minutes

On March 15, President Trump signed into law the “Full-Year Continuing Appropriations and Extensions Act, 2025.” This funds the federal government through the end of the fiscal year (FY) 2025, maintaining level funding for the CDFI Fund at $324 million until September 30. 

The continuing resolution, passed by both chambers, continues the statutory authorization of funding for the CDFI Fund, its programs, and capacity to administer them as referenced in the “Further Consolidated Appropriations Act, 2024.” This includes setting aside funding to prioritize financial and technical assistance awards for small and emerging CDFIs, CDFIs lending in high poverty areas, and Native CDFIs. It remains unclear whether or how the Administration’s executive order (EO) could impact the flow of this funding. See OFN’s statement.

“Throughout the FY 2025 appropriations cycle, OFN has consistently demonstrated the value of investing in CDFIs and appreciates the bipartisan support CDFIs continue to see in Congress,” said Dafina Williams, OFN’s Executive Vice President, Chief Public Policy Officer and Head of Government Affairs. “CDFIs maximize every federal dollar invested, multiplying and reinvesting taxpayer dollars into their own communities to deliver job creation and economic prosperity for all. We look forward to continuing our partnership with Congress and working with the Administration to ensure that the CDFI Fund’s investments continue to be accountable, efficient, and transparent.”

As the FY 2025 appropriations cycle closes out, spending talks for FY 2026 have already begun. Despite the delayed release of the President’s budget request to “late April, early May,” House Appropriations Chair Tom Cole (R-OK) aims to expedite the process and start markups in late April. Many House offices have started soliciting funding requests from the public. 

Protect the CDFI Fund and Advocate for FY 2026 Appropriations

With pressure from within the GOP to reduce the federal deficit and the unknown impacts of the EO seeking to reduce federal capacity, the CDFI Fund is facing increasing uncertainty despite playing an important role in the Administration’s economic goals. Treasury Secretary Scott Bessent recently reaffirmed his support for CDFIs, stating that “CDFIs are a key component of President Trump’s commitment to supporting Main Street America in the pursuit of job growth, wealth creation, and prosperity.” 

Now more than ever, the CDFI industry must demonstrate its collective strength and impact to reinforce its bipartisan support by urging Congress and the Administration to protect the CDFI Fund and secure its future funding. 

OFN is advocating for the preservation of the CDFI Fund and requesting level funding of $324 million for the CDFI Fund in FY 2026. To accomplish this, we need your support!

Use OFN’s Policy Action Center to urge your Members of Congress to protect the CDFI Fund and support this critical funding for FY 2026. 

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Tags: CDFI Fund, CDFI Leadership, Community Development, Congress