Senators Press Bessent on Proposed CDFI Fund Cuts
Summary
Treasury Secretary Scott Bessent appeared before the Senate Appropriations Committee on April 22, 2026 to defend the White House's proposed FY2027 budget, which seeks to cut the Community Development Financial Institutions Fund by $204.5 million, or roughly two-thirds of its current budget. A bipartisan group of 43 senators had previously urged colleagues to set aside at least $324 million for the CDFI Fund and release funds in a timely manner. Bessent stated the remaining awards would be redirected to rural communities and said the program needed to be free of waste, fraud, and abuse.
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Treasury Secretary Scott Bessent faced Senate Appropriations Committee questions on the administration's proposed $204.5 million CDFI Fund reduction, which would eliminate roughly two-thirds of the fund's current budget. Bessent said the remaining funds would be redirected to rural communities and that recent changes to New Market Tax Credits were intended to ensure compliance with federal anti-discrimination laws. A bipartisan coalition of 43 senators had already pushed for at least $324 million in CDFI funding and timely release of awards. CDFIs, including the 11 institutions operating in Nebraska cited by Sen. Deb Fischer, serve communities often overlooked by larger financial institutions. Banks and community development organizations that rely on CDFI Fund awards and New Market Tax Credits should monitor congressional appropriation proceedings for FY2027, as the proposed cuts could materially affect the availability of subsidised lending capital in underserved markets.
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Apr 23, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
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Senators press Bessent on proposed CDFI Fund cuts
April 22, 2026 Reading Time: 1 min read
Treasury Secretary Scott Bessent. Treasury Secretary Scott Bessent today faced questions from senators on both sides of the political aisle about the administration’s proposed budget cuts for the Community Development Financial Institutions Fund, with Bessent accusing the program of having pursued a partisan agenda.
The White House’s proposed budget for fiscal year 2027 calls on Congress to trim the CDFI Fund’s budget by $204.5 million, or roughly two-thirds of the program’s current budget. It would instead redirect remaining CDFI Fund awards to rural communities “where the awards are most beneficial.”
Appearing before the Senate Appropriations Committee, Bessent said he supported the proposed appropriation for rural communities. He also alluded to recent changes in CDFI Fund awards made by the Treasury Department, which last year announced it would modify the fund’s New Market Tax Credits program allocations to ensure compliance with federal anti-discrimination laws and increase monitoring of award recipients.
“We want to make sure it is doing what is designed to do and not loaded with a partisan wish list,” Bessent said. “We also make sure that the CDFI program is free of waste, fraud and abuse.”
Earlier this month, a bipartisan group of 43 senators asked their colleagues to set aside at least $324 million for the CDFI Fund and required the funds to be released in a timely manner. During the hearing, committee member Sen. Deb Fischer (R-Neb.) pointed to what she said was the good work of the 11 CDFIs in her state.
“They take on the risks to serve those who otherwise are often overlooked or who cannot be served by bigger financial institutions,” she said.
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