The National Bankers Association (NBA) has expressed deep concerns about the White House’s proposal to eliminate all appropriated funding for the Community Development Financial Institutions (CDFI) Fund in the FY 2026 Budget.
“The CDFI industry has matured beyond the need for ‘seed’ money and should at this point be financially self-sustaining,” according to President Donald Trump’s discretionary budget proposal, calling for $291 million less in funding than last year. “Remaining funding supports oversight and closeout of prior awards, maintaining CDFI certification, and support for New Markets Tax Credit administration and the zero-cost Bond Guarantee Program.”
This proposal, while not unexpected, represents a serious threat to the mission and operations of CDFIs and other mission-driven banks across the country, according to the statement.
For decades, the CDFI Fund has served as a cornerstone of investment in communities that are too often overlooked by traditional financial systems. The Fund is a powerful, bipartisan tool that leverages private capital to reach small businesses, first-time homebuyers, and historically underserved communities, the statement said.
“The CDFI Fund is not a partisan program—it’s a proven solution,” said Nicole Elam, president and CEO of the National Bankers Association. “Mission-driven banks are on the frontlines of lending in communities that others don’t reach. Eliminating this funding would not only stall progress, it would reverse it. We urge the Administration to recognize the economic value and national impact of the CDFI Fund and work with Congress to maintain and grow these critical investments in our economy.”
