Regulators Propose Repeal of Controversial CRA Rule

Federal bank regulatory agencies have jointly proposed the rescission of the Community Reinvestment Act (CRA) final rule issued in October 2023. The proposal seeks to revert to the prior CRA regulations adopted by the agencies in 1995, with certain technical amendments.

The joint release, signed by the Federal Deposit Insurance Corporation (FDIC), the Federal Reserve Board, and the Office of the Comptroller of the Currency (OCC), was issued on July 16, 2025. The proposed rule change follows pending litigation against the 2023 final rule and aims to restore certainty in the CRA framework for stakeholders.

According to the proposal, if adopted, the new regulations would limit the regulatory burden on banks while ensuring they continue to serve their communities. Currently, the 2023 final rule is subject to legal action and has not yet taken effect, so the agencies are applying the older 1995 regulations in its place.

The move to rescind the 2023 rule is seen as a response to concerns from banks and community organizations about the potential impact of the new regulations. The proposal states that comments on the attached notice of proposed rulemaking (NPRM) are due 30 days after publication in the Federal Register.

Key contacts for further information include:

• FRB: Chelsea Grate, (202) 452-2955
• OCC: Stephanie Collins, (202) 649-6870