Regulators Seek Major Changes to Bank Lending Rules for Low-income Areas

WHO:

ABC News Business - The Trump Administration announced changes to the Community Reinvestment Act.

AP News - Jesse Van Tol is the CEO of the National Community Reinvestment Coalition (NCRC).

WHAT:

ABC News Business - Changes to the Community Reinvestment Act require regulators to document how well banks lend to low-to-middle income neighborhoods.

AP News - The proposed changes would reduce the number of banks needing to fully comply with the law.

AP News - The definition of a small bank will increase from under $412 million in assets to under $1 billion in assets.

AP News - The number of banks needing to comply with parts of the CRA would be reduced by 800 banks.

AP News - Only 86 banks, or roughly 3% of all institutions, would be subject to the full extent of CRA under the new regulations.

AP News - The proposed rules will go out for a 60-day comment period before finalization.

WHERE:

AP News - The changes affect banks operating in low-to-middle income neighborhoods across the United States.

WHY:

AP News - The changes aim to ensure community development grants “are not diverted to activist causes or consumed by excessive operating costs.”

AP News - The CRA was created to combat redlining, a practice of discrimination against poor and minority communities.

HOW:

AP News - Bank examiners would place more weight on lending in certain communities and geographies, and less on the number of branches or local deposits.

AP News - Banks will need to collect more detailed information on who receives their community grants, including addresses, for increased transparency.

(UPDATED July 31, 2026 22:27 UTC)

The Trump Administration has announced significant changes to the Community Reinvestment Act, which will require regulators to document how effectively banks lend to low-to-middle income neighborhoods across the United States. Under the proposed rules, the definition of a small bank will increase from under $412 million in assets to under $1 billion, resulting in about 800 fewer banks needing to fully comply with the law, leaving only 86 banks, or roughly 3% of all institutions, subject to its full extent. The new regulations will enter a 60-day comment period before finalization, aiming to ensure that community development grants are not misallocated and that banks provide more detailed information on their lending practices.