Floor SpeechUrgent2026-05-12

TAILORED REGULATORY UPDATES FOR SUPERVISORY TESTING ACT OF 2025

EconomyTaxesEnvironmentTradeHousingAgriculture

Context

On 2026-05-12, Representative Tim Moore (R-NC-14) delivered a floor speech titled "TAILORED REGULATORY UPDATES FOR SUPERVISORY TESTING ACT OF 2025" in the House.

Full Text

TAILORED REGULATORY UPDATES FOR SUPERVISORY TESTING ACT OF 2025

Congressional Record, Volume 172 Issue 80 (Tuesday, May 12, 2026) [Congressional Record Volume 172, Number 80 (Tuesday, May 12, 2026)] [House] [Pages H3357-H3359] From the Congressional Record Online through the Government Publishing Office [ www.gpo.gov ] TAILORED REGULATORY UPDATES FOR SUPERVISORY TESTING ACT OF 2025 Mr. HILL of Arkansas. Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 4478) to amend the Federal Deposit Insurance Act to permit Federal banking agencies to examine [[Page H3358]] qualifying insured depository institutions with under $6 billion in total assets not less than once during each 18-month period, and for other purposes. The Clerk read the title of the bill. The text of the bill is as follows: H.R. 4478 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the ``Tailored Regulatory Updates for Supervisory Testing Act of 2025'' or the ``TRUST Act of 2025''. SEC. 2. MODIFICATION OF EXAMINATION CYCLE THRESHOLDS FOR WELL-MANAGED INSTITUTIONS. Section 10(d) of the Federal Deposit Insurance Act (12 U.S.C. 1820(d)) is amended-- (1) in paragraph (4)(A), by striking ``$3,000,000,000'' and inserting ``$6,000,000,000''; and (2) in paragraph (10), by striking ``$3,000,000,000'' and inserting ``$6,000,000,000''. The SPEAKER pro tempore. Pursuant to the rule, the gentleman from Arkansas (Mr. Hill) and the gentlewoman from California (Ms. Waters) each will control 20 minutes. The Chair recognizes the gentleman from Arkansas. General Leave Mr. HILL of Arkansas. Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days to revise and extend their remarks and include extraneous material on this bill. The SPEAKER pro tempore. Is there objection to the request of the gentleman from Arkansas? There was no objection. Mr. HILL of Arkansas. Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, I rise in support of the bill introduced by the gentleman from North Carolina (Mr. Moore), H.R. 4478, the TRUST Act. For many community banks across the country, the challenge is not a lack of demand for loans. It is the growing weight of compliance costs and administrative burden that has steadily increased over time-- dramatically in the years since the global financial crisis. These institutions play an essential role in our local communities by providing capital to help local farmers expand operations, support entrepreneurs, and allow families to meet their goals of building a house or doing a renovation. Overly frequent exam schedules for well-performing, low-risk banks take significant time and resources away from the customers and communities they are meant to serve. The TRUST Act recognizes that regulatory oversight should reflect the level of risk that an institution actually presents to its shareholders, its depositors, and the economy, obviously, at large. This bill raises the threshold for the 18-month exam cycle from $3 billion to $6 billion for those institutions that are well capitalized and well managed under the definitions of Federal regulators. It is critical that we modernize outdated thresholds to prevent inflation and economic growth from unnecessarily increasing burdens on our community institutions. By expanding access to an extended exam cycle, these well-managed community banks with a strong track record can focus more time and resources on lending and serving their customers rather than just being caught up in an endless cycle of repetitive paperwork. At the same time, the TRUST Act maintains robust oversight, with Federal regulators retaining their full authority to examine institutions and ensure the safety and soundness of our banking system. By balancing effective oversight with reduced burden for well-managed institutions, this bill allows community banks to better serve families, farmers, and small businesses that rely on them every single day. Mr. Moore's TRUST Act is a targeted reform that promotes efficiency without sacrificing accountability and ensures that our regulatory framework keeps pace with the needs of our communities and the financial institutions that serve them. Mr. Speaker, I urge all of my colleagues on both sides of the aisle to support Mr. Moore's bill, H.R. 4478, and I reserve the balance of my time. Ms. WATERS. Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, I rise in support of H.R. 4478, the Tailored Regulatory Updates for Supervisory Testing Act of 2025, sponsored by the gentleman from North Carolina (Mr. Moore) and the gentleman from New York (Mr. Torres). This bill raises the asset threshold from $3 billion to $6 billion for well-capitalized and well-managed banks to qualify for an 18-month examination cycle instead of a 12-month exam. Like another bill we are considering on the floor today, the SMART Act, this bill incentivizes community banks to manage their businesses well. If they do, they are able to get less frequent exams. Congress last raised the threshold to $3 billion in 2018, which covered roughly 94 percent of banks. By raising the threshold to $6 billion today, we will update this threshold while covering roughly the same portion of banks. Mr. Speaker, I urge my colleagues to support this bill, and I reserve the balance of my time. Mr. HILL of Arkansas. Mr. Speaker, I yield 5 minutes to the gentleman from North Carolina (Mr. Moore), one of our newest members on the House Financial Services Committee and the former speaker of the statehouse of North Carolina. Mr. Moore is the author of this bill and has given great thought to how we advance the ability of our Main Street institutions to serve our customers. Mr. MOORE of North Carolina. Mr. Speaker, I thank the chairman for yielding me time. Mr. Speaker, I rise today in support of the bill, the Tailored Regulatory Updates for Supervisory Testing Act, otherwise known as the TRUST Act. Back home in western North Carolina, and in so much of rural America, community banks are very often the only financial institution in so many of our small towns. These are the banks that are helping a young couple get approved for their first mortgage or sitting down with someone who wants to open a business to be able to extend that line of credit that they need to do so. Our community bankers are involved in the community. They give back to charity, as they truly are a part of the community and a key part of our economy. {time} 1550 Right now what is happening is these small-town banks are suffocating under a regulatory system that just does not make sense. It is one- size-fits-all, and it really makes no sense to treat a small, rural community bank to the same exact regulatory and compliance standards as you do with the really super large banks that you have around the country. It is just not fair. They can't keep up with it, and it just causes ridiculous costs that don't make sense. The central issue that this bill goes to is to address the examination cycle that these banks are required to undergo. The way it works is Federal regulators routinely examine banks to make sure they are operating safely and responsibly; something that is extremely important. We cannot cut down on oversight. Under current law, the healthiest community banks can qualify for examinations every 18 months instead of 12 months, but the eligibility for that relief is tied to an outdated asset threshold that was set back in 2018 which has not been updated since then. At that time, about 94 percent of community banks fell under the $3 billion threshold that allowed them to qualify for the longer examination cycle. Today, because of inflation and economic growth alone, it takes nearly $6 billion in assets to cover that same share of banks. Let's call this what it is. These banks did not suddenly become reckless overnight or stop serving their communities responsibly. The only thing that changed was the economy grew, and Washington never bothered to modernize the rules. That means that well-run community banks are now being pushed to more frequent exam cycles simply because of an outdated number on paper that no longer reflects the reality. Here is what happens. Every hour spent preparing paperwork for regulators is an hour not spent helping small businesses and helping individuals who need to get access to credit. What has to happen is this has to be updated. Congress can do this, and I believe they will do this today. [[Page H3359]] Passing the TRUST Act would update the threshold from $3 billion to $6 billion. What that would do is allow this law to reflect today's economy, and community banks will continue to qualify for the same regulatory relief that Congress originally intended. Absolutely just as important, the bill does not weaken the safety and soundness standards one bit. These institutions must still maintain strong ratings, be well-capitalized and operate without enforcement actions. To someone who is watching at home today or hears about this and wonders, why is this important? Well, it is important because if you cut down on the amount of regulations, the amount of red tape, the amount of money that just goes into the bureaucracy to feed this, if you stop spending that money there, you have that money to put into small businesses and to provide money to working families, folks who need access to capital. For that reason and so many more--I know this is a great bill, and I appreciate the support--I urge the body's passage. Ms. WATERS. Mr. Speaker, I yield myself the balance of my time. Community banks, including those that are community development financial institutions, or CDFIs, and minority depository institutions, or MDIs, provide access to loans for families to buy a home and for entrepreneurs to start a small business. This bill will help ensure more of these institutions can focus on helping their customers. I, again, urge my colleagues to suppo

Referenced legislation: HR4478, HR4478

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TAILORED REGULATORY UPDATES FOR SUPERVISORY TESTING ACT OF 2025 Congressional Record, Volume 172 Issue 80 (Tuesday, May 12, 2026) [Congressional Record Volume 172, Number 80 (Tuesday, May 12, 2026)] [House] [Pages H3357-H3359] From the Congressional Record Online through the Government Publishing Office [ www.gpo.gov ] TAILORED REGULATORY UPDATES FOR SUPERVISORY TESTING ACT OF 2025 Mr. HILL of Arkansas. Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 4478) to amend the Federal Deposit Insurance Act to permit Federal banking agencies to examine [[Page H3358]] qualifying insured depository institutions with under $6 billion in total assets not less than once during each 18-month period, and for other purposes. The Clerk read the title of the bill. The text of the bill is as follows: H.R. 4478 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the ``Tailored Regulatory Updates for Supervisory Testing Act of 2025'' or the ``TRUST Act of 2025''. SEC. 2. MODIFICATION OF EXAMINATION CYCLE THRESHOLDS FOR WELL-MANAGED INSTITUTIONS. Section 10(d) of the Federal Deposit Insurance Act (12 U.S.C. 1820(d)) is amended-- (1) in paragraph (4)(A), by striking ``$3,000,000,000'' and inserting ``$6,000,000,000''; and (2) in paragraph (10), by striking ``$3,000,000,000'' and inserting ``$6,000,000,000''. The SPEAKER pro tempore. Pursuant to the rule, the gentleman from Arkansas (Mr. Hill) and the gentlewoman from California (Ms. Waters) each will control 20 minutes. The Chair recognizes the gentleman from Arkansas. General Leave Mr. HILL of Arkansas. Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days to revise and extend their remarks and include extraneous material on this bill. The SPEAKER pro tempore. Is there objection to the request of the gentleman from Arkansas? There was no objection. Mr. HILL of Arkansas. Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, I rise in support of the bill introduced by the gentleman from North Carolina (Mr. Moore), H.R. 4478, the TRUST Act. For many community banks across the country, the challenge is not a lack of demand for loans. It is the growing weight of compliance costs and administrative burden that has steadily increased over time-- dramatically in the years since the global financial crisis. These institutions play an essential role in our local communities by providing capital to help local farmers expand operations, support entrepreneurs, and allow families to meet their goals of building a house or doing a renovation. Overly frequent exam schedules for well-performing, low-risk banks take significant time and resources away from the customers and communities they are meant to serve. The TRUST Act recognizes that regulatory oversight should reflect the level of risk that an institution actually presents to its shareholders, its depositors, and the economy, obviously, at large. This bill raises the threshold for the 18-month exam cycle from $3 billion to $6 billion for those institutions that are well capitalized and well managed under the definitions of Federal regulators. It is critical that we modernize outdated thresholds to prevent inflation and economic growth from unnecessarily increasing burdens on our community institutions. By expanding access to an extended exam cycle, these well-managed community banks with a strong track record can focus more time and resources on lending and serving their customers rather than just being caught up in an endless cycle of repetitive paperwork. At the same time, the TRUST Act maintains robust oversight, with Federal regulators retaining their full authority to examine institutions and ensure the safety and soundness of our banking system. By balancing effective oversight with reduced burden for well-managed institutions, this bill allows community banks to better serve families, farmers, and small businesses that rely on them every single day. Mr. Moore's TRUST Act is a targeted reform that promotes efficiency without sacrificing accountability and ensures that our regulatory framework keeps pace with the needs of our communities and the financial institutions that serve them. Mr. Speaker, I urge all of my colleagues on both sides of the aisle to support Mr. Moore's bill, H.R. 4478, and I reserve the balance of my time. Ms. WATERS. Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, I rise in support of H.R. 4478, the Tailored Regulatory Updates for Supervisory Testing Act of 2025, sponsored by the gentleman from North Carolina (Mr. Moore) and the gentleman from New York (Mr. Torres). This bill raises the asset threshold from $3 billion to $6 billion for well-capitalized and well-managed banks to qualify for an 18-month examination cycle instead of a 12-month exam. Like another bill we are considering on the floor today, the SMART Act, this bill incentivizes community banks to manage their businesses well. If they do, they are able to get less frequent exams. Congress last raised the threshold to $3 billion in 2018, which covered roughly 94 percent of banks. By raising the threshold to $6 billion today, we will update this threshold while covering roughly the same portion of banks. Mr. Speaker, I urge my colleagues to support this bill, and I reserve the balance of my time. Mr. HILL of Arkansas. Mr. Speaker, I yield 5 minutes to the gentleman from North Carolina (Mr. Moore), one of our newest members on the House Financial Services Committee and the former speaker of the statehouse of North Carolina. Mr. Moore is the author of this bill and has given great thought to how we advance the ability of our Main Street institutions to serve our customers. Mr. MOORE of North Carolina. Mr. Speaker, I thank the chairman for yielding me time. Mr. Speaker, I rise today in support of the bill, the Tailored Regulatory Updates for Supervisory Testing Act, otherwise known as the TRUST Act. Back home in western North Carolina, and in so much of rural America, community banks are very often the only financial institution in so many of our small towns. These are the banks that are helping a young couple get approved for their first mortgage or sitting down with someone who wants to open a business to be able to extend that line of credit that they need to do so. Our community bankers are involved in the community. They give back to charity, as they truly are a part of the community and a key part of our economy. {time} 1550 Right now what is happening is these small-town banks are suffocating under a regulatory system that just does not make sense. It is one- size-fits-all, and it really makes no sense to treat a small, rural community bank to the same exact regulatory and compliance standards as you do with the really super large banks that you have around the country. It is just not fair. They can't keep up with it, and it just causes ridiculous costs that don't make sense. The central issue that this bill goes to is to address the examination cycle that these banks are required to undergo. The way it works is Federal regulators routinely examine banks to make sure they are operating safely and responsibly; something that is extremely important. We cannot cut down on oversight. Under current law, the healthiest community banks can qualify for examinations every 18 months instead of 12 months, but the eligibility for that relief is tied to an outdated asset threshold that was set back in 2018 which has not been updated since then. At that time, about 94 percent of community banks fell under the $3 billion threshold that allowed them to qualify for the longer examination cycle. Today, because of inflation and economic growth alone, it takes nearly $6 billion in assets to cover that same share of banks. Let's call this what it is. These banks did not suddenly become reckless overnight or stop serving their communities responsibly. The only thing that changed was the economy grew, and Washington never bothered to modernize the rules. That means that well-run community banks are now being pushed to more frequent exam cycles simply because of an outdated number on paper that no longer reflects the reality. Here is what happens. Every hour spent preparing paperwork for regulators is an hour not spent helping small businesses and helping individuals who need to get access to credit. What has to happen is this has to be updated. Congress can do this, and I believe they will do this today. [[Page H3359]] Passing the TRUST Act would update the threshold from $3 billion to $6 billion. What that would do is allow this law to reflect today's economy, and community banks will continue to qualify for the same regulatory relief that Congress originally intended. Absolutely just as important, the bill does not weaken the safety and soundness standards one bit. These institutions must still maintain strong ratings, be well-capitalized and operate without enforcement actions. To someone who is watching at home today or hears about this and wonders, why is this important? Well, it is important because if you cut down on the amount of regulations, the amount of red tape, the amount of money that just goes into the bureaucracy to feed this, if you stop spending that money there, you have that money to put into small businesses and to provide money to working families, folks who need access to capital. For that reason and so many more--I know this is a great bill, and I appreciate the support--I urge the body's passage. Ms. WATERS. Mr. Speaker, I yield myself the balance of my time. Community banks, including those that are community development financial institutions, or CDFIs, and minority depository institutions, or MDIs, provide access to loans for families to buy a home and for entrepreneurs to start a small business. This bill will help ensure more of these institutions can focus on helping their customers. I, again, urge my colleagues to suppo Referenced legislation: HR4478, HR4478