Support for CDFI Fund, CDRLF, SBA lending programs must be maintained

The White House’s FY2026 supplementary budget proposal includes cuts that would negatively impact credit unions and the more than 142 million Americans they serve. America’s Credit Unions President/CEO Jim Nussle wrote to House and Senate Appropriations Committee leaders Monday, outlining key areas and urging Congress to support full funding amounts for each.

The proposal eliminates funding for the Treasury’s Community Development Financial Institutions (CDFI) Fund, NCUA’s Community Development Revolving Loan Fund (CDRLF), and several Small Business Administration (SBA) disaster relief funds.

The CDFI Fund provides funding and technical assistance grants to drive affordable housing, homeownership, small business growth, sustainable job creation, and consumer financial security through public-private partnerships (credit unions leverage $12 in private capital for each $1 from the federal government).

Nussle urged Congress to reject the administration’s request to eliminate CDFI program funding, and appropriate at least $324 million for FY26 (the enacted FY25 level).

The CDRLF provides technical assistance grants for credit unions to expand digital services, open branches in underserved areas, and offer new services or products.  

Nussle called on appropriations to fund the CDRLF with at least $4 million for FY26, the same amount as FY25.

The SBA maintains the Economic Injury Disaster Loan (EIDL) program, among others, to assist credit unions in providing small businesses with much-needed liquidity, particularly during times of crisis. 

Nussle urged appropriations leaders to recommend full funding for the SBA to support its lending programs, including the EIDL and other disaster loans, to ensure credit unions have the right regulatory environment to partner with the SBA.

A similar letter was sent to the Office of Management and Budget Monday, emphasizing that the funds in question are aligned with the administration’s goals of maximizing the use of federal grant dollars.