Rep. Maxine Waters (D-Calif.) offered words of support to a federal district court in Texas that held the Consumer Financial Protection Bureau’s (CFPB) final rule related to collecting data points on small businesses was properly promulgated under the Administrative Procedures Act (APA).

The case, Texas Bankers Association v. CFPB, challenged the collection requirements put in place by a rule the bureau was required to enact per Section 1071 of the Dodd-Frank Act and a court order. The Texas district court handling the Texas Bankers Association’s (TBA’s) case had put a stay on the matter until the U.S. Supreme Court ruled on the constitutionality of the bureau’s funding structure, one of the TBA’s main arguments.

Once the Supreme Court confirmed the CFPB’s constitutionality, the stay was lifted, and the Texas court found the CFPB had engaged in proper rulemaking procedures.

Waters said she applauded the federal judge for this decision.

“After relentless attacks from our nation’s biggest banks and Republicans in Congress, the judge rejected myriad of their baseless claims and ruled that the CFPB, under the leadership of Director Rohit Chopra, acted appropriately in promoting transparency and fair lending practices to protect the tens of thousands of minority-, women-, and LGBTQ+ owned small businesses who represent the backbone of our nation’s economy, but are disproportionately denied access to loans or subjected to steeper interest rates,” Waters said. “The CFPB’s rule is a critical attempt to turn the tide on these disparities by enhancing transparency in a way that will promote competition and help small businesses, but there is more work to do.

“If my Republican colleagues care about supporting small businesses like they claim they do, I urge them to put an end to the attacks and advance legislation like my bill, the ‘Promoting and Advancing Communities of Color Through Inclusive Lending Act,’ which builds on bipartisan work during the pandemic to provide further support to community development financial institutions (CDFIs), minority depository institutions, and the small businesses they serve,” she added. “My bill would, among other things, create a new grant program to support CDFIs that help young entrepreneurs get the capital they need to start a business of their own and thrive. So, I urge my Republican colleagues to work with Democrats to advance legislative measures like mine to ensure small businesses in rural, suburban, and urban communities can continue to contribute to our economy, helping all of our communities prosper.”

Waters wasn’t the only one who supported the court’s opinion. National Community Reinvestment Coalition President and CEO Jesse Van Tol also welcomed the ruling.

“It’s always a good day when common sense and clear law prevail over the frivolity, greed and cynicism of corporate lobbyists,” Van Tol said. “Next up: The bank lobby’s equally absurd and dishonest attempt to trick courts into derailing the Community Reinvestment Act. That selfish and dishonest attempt to sabotage economic growth in marginalized communities should meet the same fate as this failed attack on basic fairness in small-business lending.”

For an in-depth look into the court opinion, check out our sister publication, Dodd Frank Update.