The Financial Services and General Government appropriations bill for FY 2026 passed the House of Representatives yesterday and now moves to the Senate where passage is also expected. The bill sets spending levels for several agencies supporting regional innovation, economic development, and investment. Foremost are the Treasury and Small Business Administration; selected highlights are provided below.
SBA sees $13.2 million increase for entrepreneurship development
Congress overlooked the Trump administration’s request to provide only $150 million for SBA’s entrepreneurial development programs in FY 2026 and instead added $13.2 million to the FY 2025 appropriation bringing the total to $330 million for the coming year. After several months of considerable confusion and consternation, the Federal and State Technology Partnership Program (FAST), the Growth Accelerators, and the Regional Innovation Clusters programs each receive $9 million in FY 2026 appropriations. The SBDCs and Women’s Business Centers are to receive $150 million and $27 million, respectively.
An additional $106.7 million is distributed across roughly one hundred Congressional-directed spending items ranging from $40,000 to $5 million that include a number of innovation, accelerator and TBED related initiatives. Congratulations to the SSTI members included in the list.
CDFI receives $324 million, consistent with 2025
The CDFI Financial Assistance and Technical Assistance Grant programs would be funded at $188 million, while Native Initiatives would receive $28 million. The New Markets Tax Credit program, made permanent by Congress in 2025 and distributing awards for both 2024 and 2025 as recently as Dec. 23, in its FY26 awards is “encouraged to focus on areas of Appalachia affected by flooding in 2022 and 2025.”
OMB language reaffirms guidance on university indirect cost recovery
After stating there is a need for greater transparency and improvement in the identification and recovery of indirect costs, “the agreement directs 0MB to engage in discussions with the Committees on proposals to achieve these improvements, including on the FAIR model. The agreement further directs 0MB to not finalize or implement any policy, guidance, or rule, or publish a notice of proposed rulemaking, that would alter the manner in which negotiated indirect cost rates have been implemented and applied under the Uniform Grant Guidance, as that guidance was in effect during fiscal year 2024.”