Congress quietly raises bank exemption threshold to $25 billion

What it does

This bill requires the Federal Reserve to raise the asset threshold that defines a 'small' bank holding company from its current level to $25 billion. Banks below this threshold face fewer regulatory requirements. The bill benefits bank holding companies by exempting more of them from stricter oversight rules; ordinary citizens may face reduced consumer protections and increased systemic risk if larger banks operate with lighter regulation.

Why we flagged it

The bill's operative mechanism is a straightforward regulatory exemption: it raises the asset threshold that determines which banks qualify for lighter oversight. This is deregulation by definition, even though the title frames it as 'relief' for small institutions.

What the text implies

• A $25 billion threshold captures mid-sized regional banks that are systemically important but would now operate under 'small bank' exemptions designed for genuinely small institutions, potentially creating regulatory arbitrage and hidden leverage.
• The 180-day implementation window is tight; the Fed may lack time for full impact analysis on consumer protections, capital adequacy, and stress-testing requirements that would be waived.
• Banks currently above the old threshold but below $25 billion will suddenly lose regulatory scrutiny they have been operating under, creating a cliff effect rather than a gradual transition.
• The bill does not specify which specific regulatory requirements are waived under the 'small bank' exemption; the actual scope of relief depends on the Fed's interpretation of appendix C, which is not quoted in this text.

Section numbers refer to the bill text the analysis read — linked under Primary records below.

Who it affects

Raising the threshold exempts larger financial institutions from regulatory scrutiny, reducing consumer protections and increasing systemic financial risk. While the bill frames this as 'relief' for small banks, the practical effect is deregulation of institutions large enough to pose material risk to the broader economy and consumers.

Who stands to gain

• bank holding companies with $10–25 billion in consolidated assets
• savings and loan holding companies in the same range
• regional and mid-sized banks seeking to reduce compliance costs

Named in the bill

Board of Governors of the Federal Reserve System, bank holding companies, savings and loan holding companies, 12 CFR Part 225 Appendix C, Small Bank Holding Company and Savings and Loan Holding Company Policy Statement

Where it stands

6 cosponsors: 6 Republicans.

• Apr 10, 2025 — Introduced · Congress.gov: “Introduced in House”
• Apr 10, 2025 — Referred to House Committee on Financial Services · Congress.gov: “Referred to the House Committee on Financial Services”
• Jun 10, 2025 — Markup held in committee · Congress.gov: “Committee Consideration and Mark-up Session Held”
• Jun 10, 2025 — Reported out of committee · Congress.gov: “Ordered to be Reported (Amended) by the Yeas and Nays: 30 - 20”

Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.

Money around this bill

1 lobbying clients named this bill on 1 disclosure filings across 1 quarter, Jun 2026 to Jun 2026. Those filings disclosed $2,170,000 in lobbying spend. A filing names 50 bills on average, so that figure is what each filing reported, not a share belonging to this bill.

More lobbying clients named this bill than 0% of bills with at least one filing.

Byron Donalds, the sponsor, reported $66,946 in PAC receipts in the 2026 cycle.

• Independent Community Bankers of America — $2,170,000 on 1 filing

Lobbying Disclosure Act filings through Jul 16, 2026. A filing shows who paid to lobby on a bill it names, not what changed.