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Updates many statutory dollar thresholds used across federal banking, mortgage, and consumer finance laws to larger, current‑dollar amounts and requires automatic, five‑year adjustments tied to nominal U.S. GDP beginning in 2031. The Federal Reserve must apply Commerce Department GDP data to reindex those thresholds, round the results to prescribed increments, publish the new amounts in the Federal Register, and make increases effective January 1 after publication. The changes will alter when size‑ or dollar‑based regulatory triggers, exemptions, and reporting requirements apply — affecting banks, lenders, regulators, and entities subject to statutes such as the Bank Holding Company Act, Dodd‑Frank provisions, the Federal Deposit Insurance Act, and the Home Mortgage Disclosure Act. Regulators must implement and publish updates; affected firms will see some compliance and reporting thresholds shift upward.
The bill modernizes and automates dollar-based thresholds to reduce administrative burden and prevent erosion of protections, but it also removes coverage and reporting for more institutions—trading regulatory simplicity and predictability for reduced transparency, weaker consumer oversight, and the
General public, businesses, and financial institutions: Dollar-based thresholds will be automatically adjusted on a regular five-year schedule tied to official nominal GDP and published in the Federal Register, making regulatory triggers predictable, reducing arbitrary burdens, and helping protections and program rules keep pace with economic growth.
Small banks and credit unions: Institutions below the raised thresholds will face reduced regulatory and reporting burdens, lowering compliance costs and potentially enabling more local lending, lower fees, and expanded services for community customers and small businesses.
Businesses and regulators: Standardized rounding of thresholds and use of an official GDP data source will simplify administration and compliance by producing clearer, more consistent dollar triggers and easier planning.
Borrowers in low-income or minority communities, researchers, and consumer advocates: Fewer institutions subject to reporting and reduced loan‑level data availability will decrease transparency about lending patterns, making it harder to detect discrimination or redlining and to enforce fair‑lending protections.
Depositors, borrowers, and taxpayers: Expanding exemptions from prudential or supervisory triggers may increase systemic risk over time and raise the potential for contingent taxpayer liabilities if problems at insulated institutions go unchecked.
Mortgage borrowers: Raising thresholds tied to Truth in Lending and RESPA could reduce enforcement coverage for some mortgage lenders, weakening consumer protections for affected homebuyers and borrowers.
Introduced January 14, 2026 by Garland H. Barr · Last progress January 14, 2026