Opinion: Federal Regulators should approve the Capital One Community Benefits Program

As State Representative for District 74 in Texas, I am proud to voice my support for Capital One's proposed merger with Discover Financial Services in part thanks to the accompanying $265 billion Community Benefits Plan (CBP). This transformative initiative, developed in collaboration with key non-profit partners including the National Association for Latino Community Asset Builders (NALCAB), NeighborWorks America, the Opportunity Finance Network (OFN), and the Woodstock Institute, promises to bring substantial benefits to our communities, particularly in border regions like ours.

The CBP's focus on expanding access to credit and financial services resonates deeply with the needs of my district, which spans 11 counties and over 770 border miles with Mexico. In areas like ours, where economic opportunities can be limited, access to capital is crucial for both individual and community growth. Capital One's commitment of $200 billion in lending for low- and moderate-income (LMI) consumers and those living in LMI communities will be a game-changer for many of our residents who have historically been underserved by traditional banking institutions.

As someone who has witnessed firsthand the challenges faced by small businesses in our region, I am particularly encouraged by the $15 billion allocation for small business lending in LMI communities. This targeted support will be instrumental in fostering economic development and job creation in areas that need it most. Additionally, the $5 billion commitment to spending with diverse suppliers aligns perfectly with our district's rich cultural diversity and will help ensure that minority-owned businesses have the opportunity to thrive.

The CPB's $44 billion commitment to community development financing is another aspect that will significantly benefit our district. This investment in affordable housing and community infrastructure is critical for the long-term stability and growth of our border communities. It addresses a pressing need that I've seen throughout my career as both a public servant and a real estate investor.

Furthermore, Capital One's plan to maintain 30% of its branches and Cafes in LMI census tracts will help bridge the gap in banking access that many of our communities face. This, combined with the expansion of their no-fee 360 Checking account, will provide much-needed financial services to those who have been traditionally excluded from the banking system.

As a Democrat who believes in reaching across the aisle for the betterment of Texas, I see Capital One's Community Benefits Plan as a prime example of how private sector initiatives can complement public policy efforts to drive positive change in our communities. The collaborative approach taken with non-profit partners in developing this plan ensures that it addresses real, on-the-ground needs.

I urge federal regulators to approve the Capital One-Discover merger, allowing this comprehensive Community Benefits Plan to take effect. This merger and the accompanying CPB represent a significant opportunity to enhance financial inclusion, support small businesses, and foster economic growth in District 74 and similar communities across Texas and the nation.