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Last progress June 4, 2025 (7 months ago)
Introduced on June 4, 2025 by Joyce Beatty
Referred to the House Committee on Financial Services.
Creates a Treasury-run Financial Agent Mentor–Protégé Program that lets large or designated financial agents mentor small financial institutions so those small institutions can serve as financial agents or better serve customers. The Treasury must conduct annual outreach, set rules to exclude participants when appropriate, and the Office of Minority and Women Inclusion must report participation and outreach counts to Congress. The bill defines terms for financial agents, large and small financial institutions, and rural depository institutions, and takes effect 90 days after enactment.
The Secretary of the Treasury shall establish the Financial Agent Mentor-Protégé Program (the "Program") by adding a new subsection to section 308 of FIRREA so a financial agent designated by the Secretary or a large financial institution may serve as a mentor to a small financial institution under Treasury guidance or regulations.
Purpose of the Program: to allow a small financial institution either (A) to be prepared to perform as a financial agent, or (B) to improve capacity to provide services to the small institution’s customers.
Mentor eligibility and authority: a financial agent designated by the Secretary or a large financial institution may serve as a mentor, subject to guidance or regulations prescribed by the Secretary.
Outreach: the Secretary must hold outreach events to promote participation of financial agents, large financial institutions, and small financial institutions in the Program at least once a year.
Exclusion process: the Secretary shall issue guidance or regulations establishing a process under which a financial agent, large financial institution, or small financial institution may be excluded from participation in the Program.
1 meeting related to this legislation
Primary effects: Small banks, community banks, credit unions, and rural depository institutions gain access to structured mentorship from larger financial agents, which can help them develop the operational, compliance, and product capabilities needed to act as financial agents or improve customer services. Large financial agents may take on voluntary mentor roles and provide technical assistance, onboarding, or compliance support. The Treasury will assume administrative responsibilities for outreach, participant rules, and reporting; this creates additional workload for Treasury and its Office of Minority and Women Inclusion but no dedicated funding is specified. Potential positive impacts include expanded financial access in underserved and rural areas, strengthened capacity at community institutions, and improved service options for consumers. Potential risks or limits include uncertain funding for implementation, limited detail on mentor incentives or protections, and reliance on voluntary mentor participation which may slow uptake. The law does not impose new requirements on state or local governments and does not create direct mandates for private institutions beyond program participation rules set by Treasury.