America’s Credit Unions weighed in on several aspects of President Donald Trump’s fiscal year 2027 budget proposal that impacts credit unions.
Among the concerns, the submitted budget includes a $204.5 million reduction to the Community Development Financial Institutions (CDFI) Fund, significantly decreased from the $324 million level maintained in fiscal year 2026 appropriations. It also cited new administrative fees on lenders participating in Small Business Administration (SBA) programs.
On the other hand, the association was encouraged by a $30 million investment to establish a national fraud division at the Department of Justice and a $15.2 million investment to strengthen efforts to combat fraud and illicit financial activity.
“We appreciate the Administration’s focus on combating financial fraud and strengthening national security. Investing in efforts to prevent fraud, combat illicit financial activity, and protect consumers is critical, and credit unions stand ready to be strong partners in that work,” Scott Simpson, president and CEO of Americas Credit Unions, said. “At the same time, several elements of the proposal raise concerns for credit unions and the 145 million Americans they support every day. The proposed reduction to the CDFI Fund would significantly scale back a proven tool for expanding access to affordable financial services, particularly in underserved communities like rural America. Additionally, the introduction of new administrative fees on lenders participating in Small Business Administration programs risks increasing costs and limiting access to capital for small businesses.”
The president’s request represents the beginning of the appropriations process, with final funding levels determined by Congress. In FY2026, Congress maintained CDFI Fund support at $324 million despite similar proposed reductions.
“Credit unions play a vital role in supporting local economies, providing safe and affordable financial services, and helping small businesses grow. Policies that reduce investment in community development or increase the cost of lending could make it more difficult for institutions to support Main Street America,” Simpson said. “We look forward to working with Congress and the Administration to ensure the final budget supports access to affordable financial services, protects consumers, and strengthens the communities credit unions serve.”