H.R. 2702Heading to a voteJobs & the economy
Bill would bar bank regulators from citing "reputational risk"
Data as of July 22, 2026
The FIRM Act would ban federal banking regulators from using reputational risk in bank exams or enforcement.AI-decoded40-second read · 4 questions answered below
Decoded
AI-decodedWhat does this do?
The FIRM Act would stop banking regulators from using "reputational risk" when examining or supervising banks and credit unions. Agencies would have to strip references to reputational risk from rules, guidance, and exam materials, and could not issue findings, ratings, or enforcement actions based on it. Each agency must report to Congress within 180 days confirming compliance.
Who does it affect?
Affects the FDIC, Federal Reserve, OCC, National Credit Union Administration, and CFPB, along with banks, credit unions, and their customers.
Why does it matter?
Supporters say it would prevent regulators from pressuring banks to cut ties with legal but controversial businesses, as in "Operation Choke Point." Regulators could still examine banks for financial safety, fraud, or other legal compliance issues.
Where does it stand?
- Introduced
- House committee
- House vote — You are here
- Senate
- President's desk
Right now: it's headed for a House floor vote. If the Senate changes it, it goes back to the House before reaching the President.
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Official title
FIRM Act
- Introduced:
- April 8, 2025
- Latest action:
- June 20, 2025
Placed on the Union Calendar, Calendar No. 131.
Read the official bill on Congress.gov