Following the release of the President’s FY 2026 budget request earlier this year, the U.S. House and Senate Appropriations Committees have been working steadily to advance the twelve annual appropriations bills that fund the federal government. As of late July, several of these bills have moved through committee in both chambers.

While the overall appropriations process remains fluid, early signs suggest that key federal programs supporting economic development continue to have Congressional support, although we may not see funding levels equal to years past.

In both the House and Senate, multiple bills have advanced, including those that fund the Economic Development Administration (EDA), HUD’s Community Development Block Grant (CDBG) program, and Treasury’s Community Development Financial Institutions Fund (CDFI Fund). Though some top-line funding levels reflect the constraints of tight budget negotiations, economic development programs have largely been protected from being zeroed out as proposed in the President’s FY 2026 budget request earlier this year.

With the start of the new fiscal year 2026 approaching on October 1, Congress is now considering the option to bundle several appropriations bills into a “minibus” package—combining several bills into a single vote—to streamline floor consideration. If the House and Senate are unable to finalize all 12 bills by the deadline, Congress will need to pass a Continuing Resolution (CR) to keep the government funded and avoid a shutdown.

As negotiations continue, here’s how some of the economic development community’s top priorities are currently positioned in the House and Senate proposals:

FY 2026 Proposed Funding Levels – Key Programs
House and Senate Committee Marks

• Economic Development Administration (EDA)
  • FY 2025 amount: $468 million
  • FY 2026 President’s budget request: proposes to eliminate EDA
  • House FY 2026 proposal: $324.5 million
  • Senate FY 2026 proposal: $426 million
• Community Development Block Grant (CDBG) Program
  • FY 2025: $3.3 billion
  • FY 2026 President’s budget request: proposes to eliminate CDBG
  • House FY 2026 proposal: $3.3 billion
  • Senate FY 2026 proposal: $3.1 billion
• CDFI Fund
  • FY 2025: $324 million
  • FY 2026 President’s budget request: proposes to eliminate CDFI Fund
  • House FY 2026 proposal: $276.6 million
  • Senate FY 2026 proposal: not yet released

While there is still a long way to go in the appropriations process, economic development priorities remain in a relatively stable position as Congress continues to shape the FY 2026 budget. We will continue to monitor developments and provide updates as negotiations progress toward the October 1 deadline.