TAILOR Act of 2025

This bill tells federal bank and credit union regulators to match rules to each institution’s risk and business model, so lower‑risk institutions don’t face one‑size‑fits‑all requirements. Agencies must explain how they tailored every new rule and consider the total burden on banks and their customers. They must also report to Congress each year on what they did to reduce unnecessary burden.

Regulators have to review and update past rules from the last 15 years to fit this approach and finish any needed changes within three years. The bill also lets eligible community banks file shorter reports twice a year, cutting paperwork while keeping key information. In addition, banking agencies must deliver a plan to modernize supervision—covering staff training, use of technology, and community bank needs—within 18 months.

• Who is affected: Community banks and other institutions overseen by federal financial regulators; the regulators themselves.
• What changes: Tailored rules based on risk; shorter twice‑a‑year reports for eligible community banks; clear explanations for new rules; a look‑back to fix older rules; yearly updates to Congress; a modernization plan.
• When: Tailoring applies after enactment; first annual report due in one year and then yearly; past rules must be updated within three years; the modernization report is due in 18 months.