Sponsors (3)
The bill reduces regulatory and reporting burdens for many banks and indexes dollar thresholds to preserve value—potentially lowering costs and encouraging lending—while increasing risks to depositors and taxpayers, weakening consumer‑protection data, and expanding fiscal commitments over time.
Mid-sized banks and credit unions (and their customers) below the raised asset and exam thresholds face reduced supervisory requirements and compliance costs, and may have less frequent examinations, freeing staff time for lending and local services.
Raising certain thresholds narrows which firms are subject to some Dodd‑Frank resolution and enhanced supervision tools, potentially reducing the number of institutions that could trigger taxpayer-funded interventions.
Periodic indexing of statutory dollar amounts to GDP and a required Federal Register publication provide predictability and help preserve the real value of monetary thresholds, keeping caps and penalties aligned with economic growth.
Deposit-holders, taxpayers, and middle-class families face higher risk because some larger regional institutions moving above new thresholds would lose enhanced oversight, increasing the chance that regulatory problems go undetected and failures impose losses on uninsured depositors or the Deposit Insurance Fund.
Borrowers in local communities—especially low‑income or minority borrowers—lose protections as higher reporting thresholds (e.g., HMDA) reduce the amount of lending data available to detect discriminatory or risky lending patterns, weakening enforcement and oversight.
Narrowing the set of firms subject to stricter capital, registration, or activity limits may allow risky activities (e.g., proprietary trading, interlocks) to grow without corresponding prudential constraints, raising systemic risk over time.
Based on analysis of 6 sections of legislative text.
Raises many statutory dollar thresholds in federal banking law and requires the Federal Reserve to index them to U.S. GDP every five years with specified rounding rules.
Introduced January 14, 2026 by Garland H. Barr · Last progress January 14, 2026
Raises many dollar thresholds in federal banking law so fewer institutions fall under certain regulatory triggers, and requires the Federal Reserve to index those thresholds to U.S. GDP every five years using set rounding rules. The bill replaces dozens of specific dollar amounts across Title 12 (banking and credit union statutes) with larger figures (examples include multi‑million and multi‑billion dollar cutoffs) and creates a recurring adjustment process beginning in 2031 to update those figures for inflation/GDP growth.