U.S. Reps. Mike Lawler (R-NY), Joyce Beatty (D-OH), and Young Kim (R-CA) introduced a bill to allow banks to increase community investments and promote public welfare as well as local economic development.
Currently, national banks and state member banks can invest up to 15 percent of their capital and surplus in projects that benefit the public good, such as affordable housing, small business lending, and community revitalization.
The Community Investment and Prosperity Act (H.R. 5913} would increase that cap to 20 percent. This would empower banks to direct more private capital into projects that strengthen local economies and create opportunities.
“Community investment is essential to revitalizing neighborhoods, expanding affordable housing, and supporting small businesses. By giving banks the flexibility to responsibly invest more in the communities they serve, this bill helps drive economic growth and improves quality of life, particularly in areas that need it most,” Lawler said.
Companion legislation was introduced in the Senate by Sens. Tim Scott (R-SC) and Kusa Blunt Rochester (D-DE).
“Families across America are facing a housing crisis that demands creative, bipartisan solutions,” Beatty said. “This commonsense legislation will free up capital for historic investments in affordable housing, small businesses, and community development, delivering results for hardworking families.”
The bill has been endorsed by the American Banking Association, the Bank Policy Institute, Key Bank, the Affordable Housing Tax Credit Coalition, and the National Association of Affordable Housing Lenders.
“When we give our banks the tools they need to invest in our communities, Main Street wins,” Kim said. “The Community Investment and Prosperity Act will help banks invest more in affordable housing and community development projects that create jobs and opportunity. I’m proud to join Rep. Lawler is leading this commonsense effort to strengthen our neighborhoods, empower community partners, and make the dream of homeownership more attainable for hardworking families.”