WARREN, WARNOCK, COLLEAGUES URGE BANK REGULATORS TO WITHDRAW PROPOSAL TO KILL FIRST IMPROVEMENTS TO THE COMMUNITY REINVESTMENT ACT IN 30 YEARS

The following information was released by the U.S. Senate Committee on Banking, Housing, and Urban Affairs:

"Rescinding the 2023 final rule and reverting to the 1995 framework is a major step backwards and disregards the years of bipartisan work to modernize the CRA and ensure underserved communities have fair and equal access to economic and lending opportunities."

Text of Letter (PDF)

Washington, D.C. U.S. Senators Elizabeth Warren (D-Mass.), Ranking Member of the Senate Banking, Housing, and Urban Affairs Committee, and Reverend Raphael Warnock (D-GA) led a letter to Federal Reserve Board Chair Jerome Powell, Comptroller of the Currency Jonathan Gould, and Acting Federal Deposit Insurance Corporation Chairman Travis Hill following their agencies' proposal to rescind the 2023 Community Reinvestment Act final rule. The Senators laid out how this move will hurt bipartisan efforts to expand investment in low- and moderate-income communities and redress the effects of redlining and urged Trump Administration officials to withdraw its proposed rescission. Signers of the letter also include Senators Chris Van Hollen (D-MD), Tina Smith (D-MN), Cory A. Booker (D-NJ), Ron Wyden (D-OR), and Tammy Baldwin (D-WI).

The Senators wrote: "The CRA is one of your agencies' most critical tools to combat the effects of decades of discriminatory banking and lending practices and encourage increased investment in low- and moderate-income communities. The 2023 CRA final rule made important updates to outdated CRA regulations to ensure that banks are meeting the needs of everyone in the communities where they do business. We urge your agencies to withdraw the proposed rescission of the 2023 final rule and defend its clear legality in court."

"The 2023 final rule was clearly lawful," the Senators continued. "Your agencies carefully evaluated the rule and concluded on a bipartisan basis that the 2023 final rule was well within your statutory authority."

"Rescinding the 2023 final rule and reverting to the 1995 framework is a major step backwards and disregards the years of bipartisan work to modernize the CRA and ensure underserved communities have fair and equal access to economic and lending opportunities," the Senators concluded. "We strongly urge your agencies to withdraw the rescission and defend the 2023 final rule in court, and request a staff briefing on your efforts to do so by September 29, 2025."

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