On September 15, a group of seven Democratic senators, led by Elizabeth Warren (D-MA) and Raphael Warnock (D-GA), sent a letter to the heads of the Fed, the OCC, and the FDIC urging them to withdraw their proposal to rescind the 2023 CRA final rule (covered by InfoBytes here). The senators described the CRA as a “critical tool” for combatting discriminatory banking practices and expanding investment in low- and moderate-income communities. They argued that the 2023 rule “made important updates” to outdated regulations and was adopted with “broad interagency support” after a multi-year, bipartisan rulemaking process.

The letter asserted that the promulgation of the 2023 rule (also covered by InfoBytes here) was “clearly lawful” and within the agencies’ statutory authority. The senators criticized the decision to propose rescission as a response to ongoing litigation. They wrote that reverting to the 1995 framework — currently in effect today — would be “a major step backwards” and would disregard “years of bipartisan work to modernize the CRA.”

The senators urged the agencies to “withdraw the rescission and defend the 2023 final rule in court,” and requested a staff briefing from these agencies by September 29.