The Federal Reserve, along with the FDIC and OCC, have announced their intention to withdraw the 2023 Community Reinvestment Act (CRA) rule due to ongoing litigation. This decision reverses a Biden-era regulation aimed at modernizing the CRA to increase bank lending in underserved areas. The move to rescind the rule has been met with criticism from advocacy groups like Better Markets, which argue that the withdrawal deepens wealth gaps and ignores decades of discrimination against low- and moderate-income communities. Conversely, the Bank Policy Institute has welcomed the decision, stating that the 2023 rule went beyond the statute set by Congress and risked exerting undue influence on banks' credit allocation.