Community Investment and Prosperity Act
- Bill Number
- H.R. 5913
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Finance and Financial Sector
- Status
- Introduced
- Latest Action
- 2025-11-04: Referred to the House Committee on Financial Services.
- Last Updated
- 2026-06-11T23:26:31Z
AI-Generated Summary
Purpose
The Community Investment and Prosperity Act (H.R. 5913) aims to expand the ability of certain banks to invest in projects that promote public welfare, such as community development initiatives. By raising investment limits, it seeks to encourage greater financial support for economic and social benefits in underserved areas.
Key Provisions
- Short Title: The bill is named the "Community Investment and Prosperity Act."
- Investment Limit Increase:
- Amends Section 5136 of the Revised Statutes (12 U.S.C. 24) to allow national banking associations to invest up to 20% of their capital and surplus (previously 15%) in assets that promote public welfare.
- Amends Section 9 of the Federal Reserve Act (12 U.S.C. 338a) to apply the same 20% limit to state member banks.
- These changes apply specifically to the aggregate amount of such investments, enabling banks to allocate more resources without additional regulatory hurdles for exceeding the prior cap.
Significant Changes to Existing Law
- The bill modifies two longstanding banking statutes by replacing references to a 15% investment threshold with 20% in both the Revised Statutes and the Federal Reserve Act.
- Previously, banks regulated by the Comptroller of the Currency (for national banks) or the Federal Reserve (for state member banks) were restricted to 15% of their capital and surplus for public welfare investments; this raises the cap to provide more flexibility while maintaining oversight.
Potential Impacts
- On Government Agencies: The Comptroller of the Currency and the Federal Reserve Board gain authority to approve or oversee higher investment levels, potentially streamlining regulatory processes for community-focused banking activities.
- On Citizens: Could lead to increased funding for public welfare projects, such as affordable housing, small business support, or economic revitalization in low-income communities, fostering greater access to capital and local development.
- On International Relations: No direct impacts, as the bill focuses on domestic U.S. banking regulations.
- Overall, it may boost economic inclusion by allowing banks to direct more funds toward social good without diluting their core financial stability.
Main Stakeholders Affected
- Banks: National banking associations and state member banks, which can now invest a larger portion of their resources in public welfare activities.
- Regulators: The Comptroller of the Currency and the Board of Governors of the Federal Reserve System, responsible for enforcing the updated limits.
- Communities and Citizens: Particularly those in underserved or economically disadvantaged areas that benefit from targeted investments in welfare-promoting projects.
- Sponsors and Policymakers: Introduced by Representatives Lawler, Beatty, and Kim, with referral to the House Committee on Financial Services, indicating bipartisan interest in financial inclusion.
Notable Legal, Constitutional, or Political Implications
- Legal: Strengthens the framework under the Community Reinvestment Act (which encourages banks to meet local credit needs) by providing a higher statutory limit, potentially reducing the need for case-by-case waivers. No conflicts with constitutional principles, as it operates within Congress's authority to regulate banking under the Commerce Clause.
- Constitutional: Aligns with federal powers over interstate commerce and banking, without infringing on states' rights, though it indirectly affects state-chartered banks that are Federal Reserve members.
- Political: Represents a modest, targeted reform to promote economic equity, appealing across party lines by balancing bank flexibility with public benefits; could set a precedent for future adjustments to banking investment caps in response to economic needs.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Lawler, Michael [R-NY-17]
Cosponsors (8)
Rep. Beatty, Joyce [D-OH-3], Rep. Kim, Young [R-CA-40], Rep. Vindman, Eugene Simon [D-VA-7], Rep. McBride, Sarah [D-DE-At Large], Rep. Davids, Sharice [D-KS-3], Rep. Davidson, Warren [R-OH-8], Rep. Gottheimer, Josh [D-NJ-5], Rep. Bera, Ami [D-CA-6]
Recent Actions
- 2025-11-04: Referred to the House Committee on Financial Services.
- 2025-11-04: Introduced in House
- 2025-11-04: Introduced in House
Bill Versions
- Community Investment and Prosperity Act — issued 2025-11-04 — PDF (2 pages)