A $1.2 trillion funding package signed by the president earlier this month funds 95% of the government and delivers clear wins that expand capital access and technical assistance for cooperatives.
This package ended the partial government shutdown and funds key federal agencies, including the Department of Labor, the Department of State, the Small Business Administration and the Department of Housing and Urban Development.
These appropriations bills reflect continued support for cooperative priorities. Within the Financial Services and General Government (FSGG) appropriations bill, the Community Development Financial Institutions (CDFI) Fund was funded at $13.875M. The State, Foreign Operations, and Related Programs (SFOPs) bill included funding for the Cooperative Development Program (CDP), and new opportunities for co-op development in the Labor, Health and Human Services (LHHS) bill were included in the U.S. Department of Labor’s Employee Ownership Initiative.
Additional wins for cooperatives in the FY 2026 Appropriations include:
- $5 million for USDA’s Rural Cooperative Development Grant (RCDG) and $3 million for the Socially Disadvantaged Groups Grant (SDGG) programs
- $4.2 million for USDA’s Rural Energy Savings Program
- $324 million for the CDFI Fund
- $2 million for the Department of Labor’s Employee Ownership Initiative to provide technical assistance grants
- $13.875 million for the Cooperative Development Program
- SBA establishment of an Employee Ownership and Cooperatives Promotions Program through Small Business Development Centers
Within the FSGG appropriations bill, language was included that directs the Small Business Administration (SBA) to create a publicly available succession planning toolkit to help small business owners plan for ownership transitions. For co-ops, this toolkit can make succession a practical pathway by giving communities and cooperative developers a clear roadmap to approach sellers, structure a transition, and keep a business rooted locally through a cooperative model. We’ll share the toolkit as soon as it is finalized and released.
These are the kinds of federal investments that help communities finance growth, convert businesses to employee ownership, and build resilient local economies. Now is the time to start planning for FY26 grant and award cycles as agencies roll out implementation guidance and funding notices in the months ahead. We will continue tracking timelines and opportunities, and will share action alerts as soon as new application windows open or agency resources become available.
The appropriations process for FY 2027 is right around the corner. That means we’ll be tracking new priorities in the coming weeks —keep an eye out for our Advocacy Alerts to stay informed. And if you haven’t already, check out our new policymaker’s guide to prepare for the upcoming funding conversations.
Download the 2026 Policymakers’ Guide