The National Community Reinvestment Coalition (NCRC) and New Jersey Citizen Action (NJCA), along with other advocacy groups, are urging New Jersey lawmakers to pass S4694/A5957. This legislation aims to establish a state-level Community Reinvestment Act (CRA), introduced by Senator Britnee N. Timberlake and Assemblywoman Verlina Reynolds-Jackson.
The proposed CRA is designed to ensure equitable reinvestment in low- and moderate-income communities, including those of color. It seeks to provide oversight for financial institutions in New Jersey while addressing the changes in the banking environment and filling gaps left by weakened federal oversight under the Trump administration.
“New Jersey’s Community Reinvestment Act demands accountability from all financial institutions profiting here – banks, non-banks and more,” said Senator Britnee N. Timberlake. “With federal protections fading…our state must step up to protect vulnerable communities.”
Beverly Brown Ruggia of NJCA praised the bill’s introduction amid federal rollbacks on anti-discriminatory practices: “The bill will provide critical tools to fight persistent redlining in New Jersey.”
Jesse Van Tol, President of NCRC, emphasized the importance of state action due to stalled federal modernization efforts: “It’s a happy day seeing this bill introduced…I applaud NJCA and their local partners for their diligence.”
New Jersey’s CRA package includes recommendations from NCRC and NJCA, such as expanding oversight beyond physical bank branches to online institutions and credit unions.
Staci Berger from the Housing and Community Development Network highlighted ongoing discriminatory lending practices: “This legislation is a major step forward in the fight for economic and racial justice in New Jersey.”
Rev. Eric Dobson of United Black Agenda supports the legislation aligning with their 2025 platform for fair access to credit: “For decades, our communities have been shut out of wealth-building opportunities…this bill finally gives the state tools to hold banks accountable.”
Laura Sullivan from the New Jersey Institute for Social Justice stressed modern-day redlining issues: “As federal enforcement is being rolled back…a state CRA is crucial.”
If passed, New Jersey would become one of seven states with such legislation, potentially setting an example by incorporating disparity studies into its enforcement mechanisms.
