CDFI Fund Update 2026: What Credit Unions Need to Know Right Now

The CDFI Fund landscape in 2026 has looked a little different than anyone expected. Congress fully funded the program at $324 million for FY 2026, but the path from appropriation to action has been slower and more complicated than usual. Still, there are signs of movement, and that matters. The CDFI Fund is fully funded and on its way to fully functional again.

In our early April webinar, “All Things CDFI: What’s Ahead in 2026,” we walked through where things stand with the CDFI Fund and what credit unions should be watching in the months ahead. Since then, we’ve seen a few important developments that make the picture a little clearer.

Most recently, on April 17, the House Financial Services appropriations subcommittee advanced a bill that would fund the CDFI Fund at $276 million for FY 2027. That number is lower than the current enacted level, but it’s also in line with the way the House has approached this process in recent years. Just as importantly, the subcommittee did not adopt the administration’s recommendation to cut the Fund more deeply. A few days earlier, on April 15, senators from both parties urged appropriators to provide no less than $324 million for FY 2027 and to require the Fund to publish a clear schedule for applications and awards. Taken together, those developments are a reminder that congressional support for the CDFI Fund remains strong and bipartisan.

FY 2025 CDFI Fund awards are still pending, but there’s movement

If your credit union submitted a Financial Assistance application for FY 2025 and advanced to Stage 4, that’s still a very good sign. What’s been frustrating is the wait.

As explained in the webinar, Stage 4 applicants were given the opportunity to amend their applications, with the deadline later extended to April 10, 2026. Those amendments focused largely on language that could draw scrutiny under the current administration’s priorities, including references to environmental issues, race, and ethnicity. In many cases, the better approach was to focus more directly on service to low-income communities.

The good news is that there are now clearer signs that FY 2025 funding is moving through the system. An April 8 Office of Management and Budget (OMB) apportionment file indicated $289 million in FY 2025 funds for CDFI grant programs. So while awards still haven’t been announced, this no longer feels like a complete standstill.

For credit unions that made it to Stage 4, the message is still the same: you’re in a strong position. Now we’re waiting for the awards to be processed and released.

CDFI recertification is moving slowly, and many institutions are still waiting

The September 30, 2025 recertification deadline for the majority of CDFIs created a major backlog. Information shared on a February CDFI Fund webinar indicated that over 1,000 certification and recertification applications were in the queue, so credit unions that are still waiting to hear back are far from alone.

At the same time, the Fund has started sending notices to institutions that failed to recertify or lost certification. Notices of noncompliance have been sent to institutions that are still in award performance or reporting periods but no longer hold certification. Those institutions were given a limited opportunity to cure the issue by submitting a new certification application or requesting more time.

As we pointed out during the webinar, having a clear status, even when it’s disappointing, is better than being stuck in limbo. Once institutions know where they stand, they can take the next step, whether that means reapplying with 2025 year-end data, pursuing Technical Assistance funding if they’re eligible, or starting to plan their path forward. For those still waiting on recertification decisions, processing will likely continue through summer 2026.

The 60/60 CDFI lending challenge isn’t going away

The requirement that 60% of both the number of loans and the dollar volume of loans serve Low-Income Targeted Populations or Investment Areas continues to be one of the biggest operational challenges for CDFI credit unions.

Economic conditions haven’t made that any easier. When higher mortgage rates and affordability challenges push lower-income borrowers out of major loan categories, it becomes harder to maintain the required balance, especially on the dollar side. A credit union can still be doing meaningful work in its community and find itself under pressure on 60/60 because the lending environment has changed.

That’s why quarterly monitoring matters so much. It’s important not just to run the numbers but to understand what they mean and where adjustments may be needed. Early review gives institutions time to respond before year-end, rather than scrambling late in the process.

It’s time to start thinking about FY 2027 awards

Even with delays in the current cycle, one of the most important takeaways from the webinar remains unchanged: credit unions should already be thinking about FY 2027 grant application plans.

That may feel early, especially when FY 2025 awards are still pending and the FY 2026 timeline remains unsettled. But strong applications take time. Building a compelling narrative is a six- to eight-month process. It’s critical to have a clear story about what’s happening in your community, why it matters, and how your credit union is responding.

And there are good reasons to keep planning. The Senate’s April 15 letter and the House subcommittee’s April 17 action both reinforce that support for the CDFI Fund remains in place, even as the process continues to move more slowly than anyone would like. The administration’s priorities may continue to shape how the Fund operates, but Congress is continuing to show that it values the program and the impact it has in communities across the country.

What comes next

This year has tested everyone’s patience. But the latest developments suggest the system is beginning to move again.

That doesn’t mean every delay is behind us. Credit unions should still monitor 60/60 performance quarterly, stay ready to respond to recertification follow-up requests, and begin developing their FY 2027 strategy now. They should also keep an eye out for Annual Certification Report updates once the application window opens.

What’s important right now is that the broader direction looks more encouraging than it did just a few weeks ago. The CDFI Fund is fully funded and on its way to fully functional again. For credit unions doing this work, that’s an important reminder to stay prepared, stay steady, and keep moving forward.

And for those that need help with any of these, whether recertification, 60/60 performance, or FY 2027 strategy, our team is here to help you navigate what’s changing and prepare for what’s next.

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If you'd like to watch the April 2 webinar recording or view the presentation files, they're available on our CU CDFI page.