Reps. Mike Lawler (NY-17), Joyce Beatty (OH-03), and Young Kim (CA-40) have introduced the Community Investment and Prosperity Act, a bipartisan bill designed to expand banks’ capacity for community investments aimed at public welfare and economic development.
Currently, national banks and state member banks are allowed to invest up to 15% of their capital and surplus in projects that benefit the public good, such as affordable housing, small business lending, and community revitalization. The proposed legislation seeks to raise this cap to 20%, which would enable banks to allocate more private capital toward initiatives that support local economies, families, and small businesses.
“Community investment is essential to revitalizing neighborhoods, expanding affordable housing, and supporting small businesses. By giving banks the flexibility to responsibly invest more in the communities they serve, this bill helps drive economic growth and improves quality of life, particularly in areas that need it most,” said Congressman Lawler.
Congresswoman Beatty commented on the urgency of addressing housing needs: “Families across America are facing a housing crisis that demands creative, bipartisan solutions. This commonsense legislation will free up capital for historic investments in affordable housing, small businesses, and community development, delivering results for hardworking families.”
Rep. Young Kim highlighted the benefits for local communities: “When we give our banks the tools they need to invest in our communities, Main Street wins,” she said. “The Community Investment and Prosperity Act will help banks invest more in affordable housing and community development projects that create jobs and opportunity. I’m proud to join Rep. Lawler is leading this commonsense effort to strengthen our neighborhoods, empower community partners, and make the dream of homeownership more attainable for hardworking families,” said Congresswoman Kim.
Industry representatives also voiced support for the bill. Erik Rust of BPI stated: “We thank Rep. Lawler and Rep. Beatty for their work introducing legislation that would increase the discretionary Public Welfare Investments cap from 15 to 20 percent. This commonsense solution would allow banks nearing the cap to increase their investments in projects that support low- and moderate-income communities, including affordable housing, dependent on approval from their primary regulator that preserves existing safeguards in the system.”
Robert Likes from KeyBank expressed his organization’s backing: “We appreciate the leadership of Congressman Lawler, Congresswoman Beatty and Congresswoman Kim that will expand needed investments in affordable housing and community development projects. We are strong supporters of this bipartisan effort that will help neighborhoods across America grow and thrive, and make housing more affordable.”
Emily Cadik of the Affordable Housing Tax Credit Coalition noted: “Raising the PWI cap would help ensure the full potential of the recent historic Housing Credit expansion as part of One Big, Beautiful Bill. Congress has already taken meaningful action to expand the Housing Credit, and lifting the PWI cap removes an outdated barrier to allow bank investors who would like to increase their investments in affordable housing to do so. We applaud Congressman Lawler for leading this effort to increase affordable housing supply at a time of staggering need.”
Sarah Brundage from the National Association of Affordable Housing Lenders added: “Banks are vital partners in building affordable housing and optimizing the Low-Income Housing Tax Credit and New Markets Tax Credit’s impact on communities through equity investments. Raising the amount of public welfare investments that banks regulated by the Office of the Comptroller of the Currency (OCC) and Federal Reserve can make will mean more potential for investments in affordable housing and economic development. We applaud Congressmembers Lawler and Kim for introducing this commonsense, no cost proposal and we strongly urge Congress to enact it immediately as part of a bipartisan housing package.”
The House legislation was introduced alongside companion Senate legislation led by Chairman Tim Scott (R-SC) with Senator Blunt Rochester (D-DE). The Senate version was included in a broader legislative package called ROAD to Housing. The bill has received endorsements from several organizations including American Banking Association, Bank Policy Institute, Key Bank, Affordable Housing Tax Credit Coalition, and National Association of Affordable Housing Lenders.
Congressman Lawler represents New York’s 17th Congressional District north of New York City—including Rockland, Putnam, Dutchess, and Westchester Counties—and has been recognized as one of Congress’s most bipartisan members as well as being rated among its most effective lawmakers.
