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The FDIC released proposed rules for an interagency Community Reinvestment Act (CRA) reform process today. The long-awaited proposal represents the most recent of many stalled efforts to update this anti-redlining law. 

On Thursday, the Federal Deposit Insurance Corporation (FDIC) announced the release of a Notice of Proposed Rulemaking (NPR) on the regulations implementing the Community Reinvestment Act (CRA). The federal CRA, passed in 1977, is a key tool for combating the legacy and effects of redlining and disparities in lending. Woodstock Institute played a leading role in advocating for this law when it initially passed and it remains one of our top policy priorities. 

We stand with others in applauding the release of this proposal, the most recent of many stalled efforts to update this anti-redlining law which hasn’t changed in 27 years – as our colleagues at National Community Reinvestment Coalition (NCRC) put it: these “new proposed regulations to update enforcement, data collection and other aspects of the Community Reinvestment Act (CRA) offer a welcome and overdue opportunity to address the unacceptable and persistent wealth and opportunity divides that plague the world’s richest nation.” (News Release)

Comments on the FDIC’s NPR will be due August 5. This reform process is long overdue and advocates across the country are eager to modernize and strengthen the CRA. Woodstock will be working with Housing Action Illinois, our co-lead on the Illinois CRA Coalition, to educate Illinois-based organizations on the proposal, how it would affect their work and communities, and how they can provide input and participate in the process. 

Woodstock will also be working with our national partners, such as NCRC, on this important regulatory reform process. Learn more about NCRC’s work on the #TreasureCRA campaign.

Learn more about Woodstock’s past work on the federal and state CRAs here and here.