Community Investment and Prosperity Act
Summary
What This Bill Does
The Community Investment and Prosperity Act changes the public welfare investment limits for national banks and State member banks. It amends the paragraph designated Eleventh of section 5136 of the Revised Statutes, codified at 12 U.S.C. 24, by replacing 15 with 20 each place the term appears in the fifth sentence. It makes the same 15-to-20 replacement in the fifth sentence of the 23rd paragraph of section 9 of the Federal Reserve Act, codified at 12 U.S.C. 338a. In practical terms, the bill increases the cap for certain bank investments designed to promote public welfare, such as community development investments, from 15 percent to 20 percent.
Who Benefits and How
National banks benefit because they can hold a larger amount of public welfare investments under 12 U.S.C. 24. State member banks benefit because the Federal Reserve Act public welfare investment cap rises in parallel. Community development projects benefit if banks use the larger 20 percent authority for public welfare investments. Low- and moderate-income communities benefit indirectly if additional bank investment flows to qualifying community development activity.
Who Bears the Burden and How
Bank regulators must supervise a higher public welfare investment cap for national banks and State member banks. Banks using the expanded authority must manage concentration, compliance, and safety-and-soundness risk at the higher 20 percent limit. Competing bank uses of capital may receive less investment if banks allocate more to public welfare activities.
Key Provisions
- Amends 12 U.S.C. 24 to replace the 15 percent public welfare investment limit with 20 percent for national banks.
- Amends 12 U.S.C. 338a to replace the parallel 15 percent public welfare investment limit with 20 percent for State member banks.
- Expands bank authority for investments that promote public welfare and community development.
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers with clause-level evidence links.
At a Glance
What This Bill Does
Raises the statutory cap on national bank and State member bank public welfare investments from 15 percent to 20 percent by amending 12 U.S.C. 24 and 12 U.S.C. 338a.
Key Policy Areas
Banking, Community Development, Financial Regulation
Primary Purpose
Raises the statutory cap on national bank and State member bank public welfare investments from 15 percent to 20 percent by amending 12 U.S.C. 24 and 12 U.S.C. 338a.
Policy Domains
Substantive provisions
Identified Gains
- National banks
- State member banks
- Community development projects
- Low-income communities
- Moderate-income communities
Identified Costs
- Bank regulators
- Banks using expanded public welfare authority
- Competing bank capital uses
Sponsors
Legislative Progress
In CommitteeMr. Lawler (for himself, Mrs. Beatty, and Mrs. Kim) introduced …
Referred to the House Committee on Financial Services.
Introduced in House
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
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