Sponsors (3)
The bill reduces regulatory triggers and updates thresholds to maintain their real value—easing compliance burdens for smaller banks and increasing predictability—but does so at the cost of weaker reporting and oversight, higher risks of consolidation, and greater potential exposure for taxpayers.
Smaller banks and credit unions (and their customers) will face fewer regulatory triggers and lower compliance burdens, making it easier for them to merge, expand activities, and potentially offer improved local banking services and lower costs to customers.
Statutory financial thresholds will be indexed so they keep pace with economic growth, preserving their real value over time and preventing automatic erosion of the limits' intent.
Adjusted threshold amounts will be published in the Federal Register, increasing transparency and predictability for banks, credit unions, and state governments about when rules will apply.
Fewer institutions subject to regulatory limits and reduced HMDA/TILA reporting will weaken oversight and make it harder for regulators and the public to detect consumer harms and monitor fair lending and mortgage market trends.
Larger exemptions from interlock and merger limits increase the likelihood of bank consolidation, which can reduce competition and local banking choices for small businesses and consumers.
Raising dollar triggers (and indexing them upward) can allow institutions to grow without heightened prudential oversight, increasing the chance that losses or failures shift costs onto taxpayers or raise future fiscal obligations.
Based on analysis of 6 sections of legislative text.
Raises many dollar-size thresholds in federal banking, consumer-protection, and housing laws and requires five‑year GDP-based indexing of those amounts.
Introduced January 14, 2026 by Garland H. Barr · Last progress January 14, 2026
Raises many dollar-size thresholds across federal banking, consumer-protection, and housing laws so fewer institutions meet size-based triggers for special rules, reporting, or restrictions. It changes numeric dollar amounts in a wide range of statutes and directs the Federal Reserve to periodically index those dollar amounts to growth in current‑dollar U.S. GDP. The changes are textual: existing dollar figures in various banking and consumer statutes are replaced with higher, specified amounts. No new programs, agencies, funding, deadlines, or new reporting mandates are created; a later provision requires the Fed to update the dollar amounts every five years based on GDP growth, with prescribed rounding, publication, and effective-date rules.