Reps. Young Kim (CA-40), Mike Lawler (NY-17), and Joyce Beatty (OH-03) have introduced the Community Investment and Prosperity Act, a bill aimed at increasing banks’ ability to invest in projects that support public welfare and local economic development.
Currently, national banks and state member banks are allowed to invest up to 15% of their capital and surplus in initiatives such as affordable housing, small business lending, and community revitalization. The new legislation proposes raising this cap to 20%, with the goal of enabling more private capital to flow into projects that strengthen local economies.
“When we give our banks the tools they need to invest in our communities, Main Street wins,” said Rep. Young Kim. “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 in leading this commonsense effort to strengthen our neighborhoods, empower community partners, and make the dream of homeownership more attainable for hardworking families.”
Rep. Lawler added: “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.”
“Families across America are facing a housing crisis that demands creative, bipartisan solutions,” said Rep. Beatty. “This commonsense legislation will free up capital for historic investments in affordable housing, small businesses, and community development, delivering results for hardworking families.”
Sarah Brundage, President and CEO of the National Association of Affordable Housing Lenders stated: “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 the 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.”
Rob Nichols, President and CEO of the American Bankers Association said: “ABA applauds Reps. Lawler, Beatty and Kim for introducing the Community Investment and Prosperity Act, which amends the National Bank Act and Federal Reserve Act to increase the cap under which banks are allowed to make Public Welfare Investments. This important bipartisan legislation will make it easier for banks to make critical investments, including for Community Reinvestment Act purposes, in much-needed affordable housing, financial education and other critical community needs.”
Robert Likes from KeyBank also commented: “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.”
The House bill was introduced alongside companion legislation led by Chairman Tim Scott (R-SC) with Senator Blunt Rochester (D-DE) in the Senate as part of a broader ROAD to Housing package supported by several industry groups.
Young Kim has been serving as U.S Representative for California’s 40th district since 2021 after replacing Gil Cisneros; she previously served from 2014–2016 in California’s State Assembly.
Kim was born in Incheon, South Korea in 1962 before moving to La Habra where she currently resides; she graduated from University of Southern California with a BBA degree.
