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# Texas court blocks revised Community Reinvestment Act rule days before effective date
- URL: https://www.theglobalbanker.com/texas-court-blocks-revised-community-reinvestment-act-rule-days-before-effective-date/
- Published: 2024-03-30T05:00:00.000Z
- Updated: 2026-09-29T16:27:23.000Z
- Description: A preliminary injunction bars the Fed, FDIC and OCC from enforcing the revised CRA rule against the banking and business groups challenging it, and extends its implementation dates day for day.
- Author: TGB Editorial Team
- Tags: Regulations, Americas, #archive

A US federal court in Texas on 29 March 2024 granted a preliminary injunction barring the Federal Reserve, the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC) from enforcing their revised Community Reinvestment Act (CRA) rule against the banking and business groups challenging it, days before the rule's 1 April 2024 effective date.

Judge Matthew Kacsmaryk of the US District Court for the Northern District of Texas also extended the rule's implementation dates by one day for each day the injunction remains in place.

The lawsuit was filed on 5 February 2024 by the American Bankers Association, the US Chamber of Commerce, the Independent Community Bankers of America, the Texas Bankers Association, the Independent Bankers Association of Texas, the Amarillo Chamber of Commerce and the Longview Chamber of Commerce. The groups argued that the rule exceeded the agencies' regulatory authority.

#### GROUNDS FOR THE RULING

The court found that the plaintiffs were likely to succeed on the merits, concluding that the agencies' interpretation of the statutory term “entire community” conflicted with its ordinary meaning and the law's geographic focus, and that the CRA does not authorise consideration of deposit products when assessing a community's credit needs. It also invoked the major questions doctrine, and found that compliance costs amounted to irreparable harm.

The agencies finalised the rule in October 2023\. It changes how banks' CRA performance is evaluated, including by assessing banks in areas where they conduct retail lending as well as around their branches, and by evaluating deposit products alongside credit offerings. On 21 March 2024, the agencies had issued an interim final rule moving the applicability date of the facility-based assessment area and public file provisions from 1 April 2024 to 1 January 2026.