Bill would raise dollar thresholds in decades-old banking laws

What does this do?

This bill raises dozens of dollar-based asset and transaction thresholds in federal banking laws, including the Bank Holding Company Act, Dodd-Frank Act, and Truth in Lending Act, among others. Starting in 2031 and every five years after, the Federal Reserve Board must automatically recalculate these thresholds based on U.S. economic growth since 2026, with new figures published and taking effect the following January.

Who does it affect?

This primarily affects banks, credit unions, and other financial institutions, especially small and mid-sized community banks. It could also indirectly affect bank customers and communities through changes to consumer protection and community lending rules, as well as regulators like the Federal Reserve, FDIC, and National Credit Union Administration.

Why does it matter?

Because thresholds were set decades ago and bank assets have grown with the economy, more institutions have come under rules originally meant for fewer, larger banks. Raising and periodically updating these thresholds shifts which institutions face certain compliance, reporting, or oversight requirements.

Where does it stand?