Federal Reserve and Partner Agencies Propose Rescission of 2023 Community Reinvestment Act Final Rule
Washington D.C. – July 16, 2025 – In a significant development impacting community development and financial inclusion, the Board of Governors of the Federal Reserve System, along with other federal agencies, announced today a joint proposal to rescind the final rule for the Community Reinvestment Act (CRA) that was published in 2023. This proposed action signals a potential reconsideration of the framework governing how banking institutions serve the credit needs of their entire communities, including low- and moderate-income neighborhoods.
The Community Reinvestment Act, originally enacted in 1977, encourages banks to meet the credit needs of the communities in which they operate, including low- and moderate-income neighborhoods. Over the years, the regulations implementing the CRA have evolved to adapt to changes in the banking landscape and community needs.
The agencies’ decision to propose rescinding the 2023 rule stems from a careful review and consideration of feedback received and subsequent analysis. While the specific details and rationale for this proposed rescission will be further elaborated upon in the official proposal document, it is understood that such actions are typically taken to address concerns regarding the rule’s effectiveness, implementation challenges, or to pursue an alternative approach deemed more suitable for achieving the CRA’s core objectives.
This proposed rescission does not immediately alter existing CRA obligations for financial institutions. Instead, it initiates a public comment period, inviting stakeholders—including community organizations, consumer advocates, and the banking industry—to provide their perspectives on this proposed change. This period is crucial for ensuring a robust and inclusive dialogue as the agencies deliberate on the future of CRA regulation.
The Federal Reserve and its partner agencies remain committed to fostering strong and vibrant communities. They aim to ensure that the CRA continues to be an effective tool in promoting fair access to credit and investment opportunities for all individuals and communities. The agencies will carefully consider all comments received during the public comment period before making a final decision on the proposed rescission. Further details regarding the public comment period and how to submit feedback are expected to be released shortly.
Agencies issue joint proposal to rescind 2023 Community Reinvestment Act final rule
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