Please ensure Javascript is enabled for purposes of website accessibility Bill to continue bank investments in all communities introduced in state House

Bill to continue bank investments in all communities introduced in state House

Will respond to proposed federal weakening of Community Reinvestment Act

Pennsylvania House Democratic Caucus    October 7, 2026 | 11:52 AM

HARRISBURG, Oct. 7 – In response to recent federal proposals that would weaken the obligation of banks to invest in low- and middle-income communities, state Rep. Napoleon Nelson, D-Montgomery, has introduced legislation that will preserve equitable banking in Pennsylvania.

The legislation, H.B. 2822, is modeled after the Community Reinvestment Act, federal law 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 has been critical throughout the post-Civil Rights era in ensuring that banks across our nation, and especially here in Pennsylvania, continue to act as strong community partners for every town, no matter their size, needs or composition,” Nelson said. “Pennsylvania is covered in communities that are hidden gems and already have great things happening but need extra support, or communities that are waiting for the right investments to help them thrive.

“This legislation will ensure that every community, not just the most well off or the most populous, have the resources they need so that each of our neighbors can shape the future of their hometown for the better.”

Recent federal proposals would weaken accountability measures for over 800 banking companies operating over 5,000 branches across the nation, including lowering the amount of investment banks need to make for their communities and establishing restrictions on how these investments can be made, jeopardizing their ability to support underserved places across the country.

Nelson has stated that he intends to tour several rural communities that would be positively impacted by H.B. 2822.

“Our rural communities will be disproportionately affected by these federal cuts, so it is critical that we support them now before it is too late,” Nelson said. “I look forward to seeing how these investments can support communities across Pennsylvania, which help to keep large swaths of our Commonwealth moving.”

House Bill 2822 currently awaits consideration in the House Commerce Committee.