A federal judge in Amarillo, Texas, chosen by former President Donald Trump, stopped new regulations proposed by the Biden administration.
These rules aimed to change how loans are given to low- and moderate-income Americans. Banking and business groups, like the American Bankers Association and the U.S. Chamber of Commerce, opposed the changes.
Judge Matthew Kacsmaryk of the U.S. District Court issued a temporary order, supporting the groups against the regulations planned to start on Monday.
He said the rules did not match the Community Reinvestment Act of 1977, which tries to stop unfair lending practices.
The Federal Reserve, Federal Deposit Insurance Corporation, and Office of the Comptroller of the Currency updated the regulations to make sure more places had loans for low-income people.
Conservative legal challenges persist against Biden’s policies (Via Donald McGregor/Getty Images)
But Judge Kacsmaryk said these changes went beyond what the 1977 law allowed.
His decision is important because he has made other big decisions before, like stopping the abortion pill mifepristone. This fits with other conservative cases against President Biden’s policies, often in Texas courts.
Even though the U.S. Judicial Conference tries to stop people from choosing courts, conservative groups keep finding places where judges might agree with them.
This order is a problem for President Biden’s plans to make lending fairer, showing how legal fights are changing new federal policies.
