Opportunity Finance Network Responds to FY 2027 Budget Proposal and Urges Bipartisan Action

OFN Expresses Concerns Over FY 2027 Budget

On April 3, 2026, the Opportunity Finance Network (OFN) publicly shared a statement criticizing the Fiscal Year (FY) 2027 budget request from the White House. This proposal, which involves a significant $204 million reduction to the Community Development Financial Institutions (CDFI) Fund, has raised alarms about potential adverse effects on American communities.

Context of the Budget Cuts

The budget outline not only suggests cuts to the CDFI Fund but also redirects resources towards rural initiatives while degrading funding for other crucial programs connected to the Small Business Administration (SBA) and the Department of Housing and Urban Development (HUD). OFN President and CEO Harold Pettigrew characterized the budget proposal as "deeply disappointing" and a misstep that could undermine programs intended to enhance affordable housing and promote small business growth.

CDFIs are vital players in stimulating economic activity and increasing job opportunities across the nation. By facilitating access to capital in underserved areas—ranging from rural locales to urban settings—CDFIs contribute significantly to community development and economic resilience.

A Call for Bipartisan Support

"There can be no 'America First' agenda without investing in communities first," Pettigrew asserted. He highlighted the importance of the CDFI Fund in generating economic opportunities, stating, "CDFIs drive economic opportunity in communities across America, delivering jobs, affordable housing, and small business growth with proven efficiency and accountability."

The statement serves as a rallying cry for both the Administration and Congress, encouraging them to collaborate in restoring the critical funding that supports community growth, housing supply expansion, and small business development.

A Proven Track Record of Impact

For over three decades, the CDFI Fund has been instrumental in bolstering economic opportunity within American communities. It is recognized as an effective tool for enhancing President Trump’s economic agenda, leveraging approximately $8 in private sector investment for every $1 allocated from public funding. In 2023, recipients of the CDFI Program financed over 109,000 businesses and created around 45,000 affordable housing units.

With the potential cuts to the CDFI Fund, there are genuine concerns about jeopardizing thousands of projects that are crucial for job creation and financial growth in local communities. Prioritizing funding for CDFIs is paramount, as these institutions lead the charge in financing initiatives that mainstream fintechs often overlook.

History of Support for CDFI Funding

The Congress has traditionally backed the CDFI Fund during budget negotiations. Despite a previous White House budget proposal that threatened to slash nearly 90 percent of CDFI Fund grant programs, a bipartisan FY 2026 spending package was passed, granting $324 million to the Fund.

The OFN is committed to engaging with Congress to maintain this level of funding in FY 2027 while ensuring representatives are aware of the vital roles that CDFIs play within their constituencies.

Taking Action in Your Community

Now, more than ever, CDFIs and their allies must work together to advocate for continued support of the CDFI Fund. Citizens are encouraged to reach out to their elected officials to share how CDFIs positively impact their local communities and the importance of safeguarding these essential resources.

About Opportunity Finance Network

The Opportunity Finance Network (OFN) stands as a leading intermediary and network devoted to community development investment. With assets surpassing $1 billion, OFN encompasses over 490 member organizations—including community development loan funds, credit unions, and banks—dedicated to serving financially underserved populations across the United States. For 40 years, OFN has acted as a reputable partner for various sectors, assisting in community investments that foster economic opportunities for all.

Continued investment in CDFI programs will facilitate more robust financial infrastructures that can propel local economies and provide necessary resources for those in need of support.