Sponsors (8)
Official title: To index statutory thresholds, and for other purposes.
Introduced December 10, 2025 by Garland H. Barr · Last progress December 10, 2025
The bill reduces regulatory burdens and creates predictable, GDP-indexed thresholds that benefit many banks, but it narrows prudential oversight to the very largest firms — increasing the risk that mid-sized institutions, depositors, and taxpayers face greater exposure to financial instability.
Financial institutions near prior cutoffs (mid-size banks, holding companies, and nonbank firms below the new higher thresholds) will face less enhanced supervision and reporting, reducing compliance costs and regulatory burdens for those firms.
Regulators and firms will get more predictability because asset thresholds are automatically adjusted for nominal GDP growth, reducing the need for frequent separate rulemakings about thresholds.
Uniform, periodic threshold updates across the Fed, OCC, and FDIC improve regulatory consistency so firms face more similar and predictable coverage decisions across agencies.
Mid-size banks and nonbank financial firms (roughly $50B–$370B) will be removed from or avoid enhanced supervision and reporting, raising the chance of increased systemic risk and greater potential losses borne by taxpayers and depositors.
Indexing thresholds to nominal GDP (rather than risk-sensitive metrics) can inappropriately relax supervision when GDP growth masks rising sector-specific risks, reducing the rules' responsiveness to real financial vulnerabilities.
Reducing reporting and mitigation triggers will weaken the early-warning data available to the Office of Financial Research and the Financial Stability Oversight Council, hindering systemic risk monitoring and timely intervention.
Based on analysis of 3 sections of legislative text.
Raises and requires periodic GDP‑indexed adjustments to dollar thresholds that trigger bank reporting, supervision, and assessment obligations.
Raises and indexes many dollar-based thresholds used in federal banking and financial-stability law so those triggers reflect growth in current‑dollar U.S. GDP. The bill substitutes higher fixed dollar amounts in multiple statutes (broadening asset-size cutoffs and notification/assessment triggers) and requires periodic, formulaic five‑year adjustments by the Federal Reserve (with parallel reviews by OCC and FDIC) using Commerce Department GDP figures and specified rounding rules. As a result, fewer banks and financial firms will meet some statutory asset- or assessment-based thresholds at any given time than under current dollar amounts, and agencies must update regulatory thresholds on a recurring timetable and report changes to Congress.