Please ensure Javascript is enabled for purposes of website accessibility Nelson to introduce legislation to preserve equitable banking opportunities

Nelson to introduce legislation to preserve equitable banking opportunities

Comes as federal government looks to weaken existing guidelines

Pennsylvania House Democratic Caucus    August 19, 2026 | 4:25 PM

HARRISBURG, Aug. 19 – Due to the federal government’s recent proposals that would weaken the obligation of banks to invest in low- and middle-income communities, state Rep. Napoleon Nelson, D-Montgomery, has announced his intention to introduce legislation that will preserve equitable banking in Pennsylvania.

The legislation will be based on the Community Reinvestment Act, federal legislation passed in 1977 that requires commercial banks and savings associations to meet the needs of all borrowers in the local community – which has led to support for first time homebuyer programs, community health centers, accessibility improvements, land banks, daycare centers and small farmers across Pennsylvania and the nation.

“The CRA is a vital tool that has been proven to be essential for small towns and marginalized communities throughout the commonwealth,” said Nelson. “Our Main Streets have historically been economic drivers of their communities, and our goal is to continue providing the much-needed resources. This legislation will ensure that every community in Pennsylvania has financial accessibility that fits their needs so that every one of our neighbors has a chance to shape their own future for the better.

 

“It goes beyond recognizing our communities have needs but also acknowledges that these communities already have great things happening. These hidden gems are waiting for our investment; they just need help by being intentional with how we make available the capital that will provide opportunities for these communities to thrive.”

Recent federal proposals would weaken accountability measures for over 5,000 banks across the nation, including lowering the amount of work banks need to do for their communities and allowing CRA credits to be used for projects that do not benefit the local community.

“The CRA has made it possible for community development financial institutions to collaborate with and support small businesses throughout Pennsylvania over the last 30 years,” said Varsovia Fernandez, CEO of the Pennsylvania CDFI Network. “It helps to ensure that every entrepreneur can access business services and loan capital, to create success in their own community while keeping banks engaged. I am grateful for the work that Representative Nelson is doing to protect economic opportunity across Pennsylvania.”

Nelson is currently circulating the legislation amongst his colleagues, seeking support for the measure. He intends to introduce the legislation at a later date.