Community Reinvestment Act litigation
Texas Bankers Association v. OCC
Date: March 25, 2024
Issue: Federal bank regulatory agencies intend to rescind their Community Reinvestment Act (CRA) final rule.
Case Summary: The FDIC, Federal Reserve Board of Governors, and Office of the Comptroller of the Currency (the agencies) announced their plans to rescind their CRA final rule.
ABA and its co-plaintiffs sued the agencies, challenging their final rule implementing the CRA. ABA also moved for a preliminary injunction, and on March 29, 2024, Judge Matthew Kacsmaryk of the Northern District of Texas granted the motion. The agencies appealed the district court’s decision.
On March 28, 2025, the agencies announced they would rescind the rule. They stated that, in light of pending litigation, they propose rescinding the CRA final rule and reinstating the 1995 framework that existed before the rule’s adoption. As a result, banks will not have to comply with the final rule’s rigorous tests. The agencies also affirmed their commitment to working together to maintain a consistent regulatory approach to CRA implementation.
On April 1, 2025, the Fifth Circuit granted the agencies’ unopposed motion to pause ABA’s case while the rulemaking process proceeds.
Bottom Line: In a joint statement the co-plaintiffs stated: “We welcome today’s announcement from the federal banking agencies that they intend to rescind the 2023 Community Reinvestment Act Final Rule. As we have shown in our ongoing legal challenge, the 2023 effort to modernize the rules around CRA exceeded the agencies’ statutory authority and would have created disincentives for banks to invest in their communities. Given the strength of our case and the court’s rulings to date, rescinding the rule is the right decision. The co-plaintiffs look forward to learning more about the agencies’ plan to rescind the rule. In the meantime, the nation’s banks remain committed to complying with the Community Reinvestment Act and achieving our shared goal of supporting local communities and expanding economic opportunities for all Americans.”
Documents: Press Release, Order
