Debating Improvements to the Community Reinvestment Act

The Community Reinvestment Act of 1977 was the final of a suite of federal laws aimed at fighting racial segregation in housing. Congress is beginning to consider how best to modernize the act to meet the challenges of contemporary times.

1 minute read

February 11, 2020, 6:00 AM PST

By James Brasuell @CasualBrasuell


Washington D.C. - Federal Reserve

Stefan Fussan / Flickr

The House Committee on Financial Services recently held a hearing on the Community Reinvestment Act, one of the Federal Reserve's oversight duties, according to an article by Claudia Sahm.

News coverage of the hearing, such as that found here or here, as well as the hearing itself, can be hard to follow. You thought monetary policy was a black box? Debates about the Community Reinvestment Act are a bewildering mix of technical jargon and heated “she said-he said” exchanges.

Sahm makes it clear why Americans should care about the Community Reinvestment Act, and calls for improvements to the Community Reinvestment Act that will "make it accountable to Main Street."

Since the Community Reinvestment Act was adopted in 1977, Congress updated the act once, in 1995, and is now preparing to do the same again. According to Sahm, "The purpose of the act is not yet fulfilled—neighborhoods today still differ sharply and substantially by race and income. Massive differences in wealth remain."

Monday, February 3, 2020 in Washington Center for Equitable Growth

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