Community Investment and Prosperity Act
Summary
The Community Investment and Prosperity Act proposes to amend sections of the Revised Statutes of the United States and the Federal Reserve Act. Specifically, it aims to increase the aggregate amount of investments that national banking associations and state member banks can make to promote public welfare. The bill seeks to change the limit from 15% to 20%.
Expected Effects
The likely effect of this bill is an increase in the amount of funds that banks can allocate towards public welfare projects. This could lead to more investment in community development initiatives. However, it could also increase the risk exposure of banks.
Potential Benefits
- Increased investment in community development projects.
- Potential for economic growth in underserved areas.
- Greater flexibility for banks to support public welfare initiatives.
- Could stimulate local economies through targeted investments.
Potential Disadvantages
- Increased risk exposure for banks due to larger investments.
- Potential for misallocation of funds if not properly regulated.
- Possible inflationary effects if investments are not managed effectively.
- May not directly benefit all communities equally.
Constitutional Alignment
The bill appears to align with the General Welfare Clause of the Constitution, which allows Congress to enact laws that "promote the general Welfare." Article I, Section 8, Clause 1 grants Congress the power to lay and collect taxes, duties, imposts and excises, to pay the debts and provide for the common defense and general welfare of the United States. The bill does not appear to infringe on any specific constitutional rights or limitations.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).