For Immediate Release:
July 17, 2025
Contact:
Robert Mayo | hello@woodstockinst.org
This week federal banking regulators approved and issued a notice of proposed rulemaking to rescind updates to the regulation implementing the Community Reinvestment Act (CRA) issued in October 2023 and return to the prior regulation adopted in 1995. The 2023 rule had not yet taken effect due to an ongoing lawsuit.
Horacio Mendez, President & CEO of Woodstock Institute, said, “The Trump Administration has decided to unceremoniously discard the years of input and collaboration between regulators, industry, and advocates it took to create the 2023 rule. We fear this choice represents the first step towards further defanging the CRA, which is a crucial tool for elevating community voices and holding banks accountable.
“The final 2023 rule was a much-needed update that brought rules implementing the 1977 CRA more in line with the realities of the 2025 banking system. Among its provisions, the rule set clearer standards for lending towards low- and moderate-income communities and incentivized banks to enhance their CRA rating by offering exam credit for deposit products and special purpose credit programs that meet the unique needs of lower-income communities and communities of color.
“As the federal government continues its ‘soft on crime’ deregulatory campaign, it becomes even more important that we have power at the state level to hold the financial industry accountable. We in Illinois can chart a path forward for the rest of the country by building a more equitable financial system through the Illinois Community Reinvestment Act, one of the strongest state-level CRA laws in the nation.”
