H.R.2890 - Financial Inclusion in Banking Act of 2025 (119th Congress)
Summary
H.R.2890, the Financial Inclusion in Banking Act of 2025, aims to amend the Consumer Financial Protection Act of 2010. It directs the Office of Community Affairs to identify causes and solutions for under-banked, un-banked, and underserved consumers. The bill mandates research, coordination with federal agencies, and the development of financial education strategies.
Expected Effects
The bill's passage would lead to a more focused effort within the CFPB to address financial exclusion. This includes increased research and reporting on barriers to banking access. Ultimately, the goal is to increase participation of underserved populations in the banking system.
Potential Benefits
- Increased access to financial services for under-banked and un-banked individuals.
- Enhanced financial education for vulnerable populations.
- Improved understanding of the barriers preventing access to banking services.
- Better coordination among federal agencies to address financial inclusion.
- Data-driven strategies to promote participation in the banking system.
Potential Disadvantages
- Potential for increased regulatory burden on financial institutions.
- Possible expansion of government oversight into personal financial decisions.
- Risk of ineffective strategies if research is poorly conducted or biased.
- Duplication of efforts if coordination with other agencies is not efficient.
- Costs associated with the new reporting requirements and research initiatives.
Constitutional Alignment
The bill appears to align with the Constitution's general welfare clause, as it seeks to promote economic inclusion and opportunity. Congress has the power to regulate commerce and establish laws necessary and proper for carrying out its enumerated powers (Article I, Section 8). The creation of an office within the CFPB and the mandate for reporting to Congress fall within these powers.
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).