Sponsors (2)
The bill reduces regulatory burden and redirects FDIC resources away from mid‑sized banks toward higher‑risk institutions, trading lower compliance costs for those banks against increased risk that problems at mid‑sized banks go undetected, potentially harming customers and exposing taxpayers.
FDIC examiners and taxpayers: Less frequent exams for qualifying $3B–$6B banks free examiner time to be redirected toward larger or higher‑risk banks, potentially improving supervisory prioritization of systemically important institutions.
Banks with $3B–$6B in assets: These institutions would face fewer routine examinations, reducing their compliance costs and administrative burden.
Taxpayers and middle-class families: Fewer routine examinations of $3B–$6B banks could allow undetected problems to grow, increasing the chance of bank failures that taxpayers might need to cover.
Customers of mid-sized banks (many middle‑class families): Reduced oversight could delay detection of consumer‑protection violations or unsafe lending practices, harming borrowers and account holders.
Financial institutions, investors, and taxpayers: Lower examination frequency may weaken market discipline and investor confidence if it creates a perception of reduced regulatory scrutiny, potentially increasing systemic risk.
Based on analysis of 2 sections of legislative text.
Raises two asset-size thresholds used to determine eligibility for modified bank examination cycles from $3,000,000,000 to $6,000,000,000.
Official title: TRUST Act of 2025
Introduced July 17, 2025 by Tim Moore · Last progress May 13, 2026
Raises the asset-size thresholds used to determine which depository institutions qualify for extended or modified supervisory examination cycles. The bill doubles two numeric dollar thresholds in current law from $3,000,000,000 to $6,000,000,000, changing which "well-managed" institutions may be examined less frequently. The change narrows the population of banks subject to the more-frequent examination schedule and reduces the supervisory burden on institutions between the old and new thresholds, while shifting examination resources toward larger institutions.