Urges Congress to oppose proposed federal regulatory changes to "Community Reinvestment Act."
Impact
The resolution highlights significant advancements made under the CRA, such as a 39% increase in loans to LMI borrowers between 1993 and 1998, compared to a mere 17% for higher-income groups. Despite these gains, challenges remain, notably that minority-owned businesses and female entrepreneurs still face barriers when accessing small business loans. The resolution positions the CRA as a critical measure against these inequities, advocating for its preservation amidst the proposed regulatory changes.
Summary
ACR62 is a concurrent resolution from the New Jersey Legislature that urges the United States Congress to oppose proposed federal regulatory changes to the Community Reinvestment Act (CRA). The CRA, enacted in 1977, is intended to ensure that financial institutions meet the credit needs of the communities they serve, particularly low-and-moderate-income (LMI) neighborhoods. This resolution underscores the importance of the CRA in combating discriminatory lending practices like redlining and promoting fair access to financial services for all communities.
Contention
Proposed changes by the Trump administration have generated substantial concern. These changes would allow banks greater latitude, such as financing athletic stadium improvements in low-income census tracts and granting CRA credit for middle-income housing in affluent areas. Critics argue that these adjustments could dilute the effectiveness of the CRA and ultimately weaken support for community development initiatives in LMI neighborhoods, exacerbating existing disparities in access to credit and resources.
Expresses to Federal Energy Regulatory Commission opposition to proposed Northeast Supply Enhancement Project; urges consideration of certain alternative projects.