Banking Regulators to Rescind 2023 Community Reinvestment Act Rule

Posted: Apr 02 2025

The Federal Reserve, FDIC and Office of the Comptroller of the Currency have announced they intend to rescind the 2023 Community Reinvestment Act final rule “in light of pending litigation.” They will instead reinstate the CRA framework that was in place before the rule.

The agencies first proposed the rule in 2022 as part of a long-planned overhaul of the CRA framework. They finalized the rule the following year, although the Fed and FDIC board votes were not unanimous. The American Bankers Association, U.S. Chamber of Commerce and five national and state associations later sued the banking agencies in federal court, arguing that regulators exceeded their statutory authority. A federal judge last year issued a preliminary injunction against enforcing the rule.

In a brief statement, the three banking agencies said they will “continue to work together to promote a consistent regulatory approach on their implementation of the CRA.” They did not provide a timeline for when the Fed and FDIC boards plan to vote on rescinding the rule.

To view the agencies statement, visit: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20250328a.htm