Regulators propose overhaul to law governing how banks lend to low-and-middle income communities

The Trump Administration proposes revising the Community Reinvestment Act (CRA) to reduce the number of banks required to comply, adjust asset thresholds for small and intermediate banks, and limit how banks allocate funds to community development groups. The changes aim to prioritize local lending over branch expansion and deposits but face criticism for potentially discouraging grants to national organizations and rural communities.