Fed gets a community bank lobbyist—and banks get a bigger regulatory break
H.R. 6554 — Community Bank Representation Act · Filed by Mónica De La Cruz (R-TX) · 3 cosponsors · Introduced Dec 10, 2025 · Reported out
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What it does
This bill amends the Federal Reserve Act to create a dedicated Board of Governors seat for a member with demonstrated experience in community banking, tasked with developing policy recommendations and overseeing supervision of banks with less than $17 billion in assets. The bill raises the asset threshold from $10 billion to $17 billion, requires the community bank member to appear at semi-annual congressional hearings, and ties future threshold adjustments to GDP growth.
Why we flagged it
The bill creates a dedicated Federal Reserve board position and oversight mechanism specifically for community banks, raising the regulatory threshold and establishing a formal advocacy channel within the central bank. This is functionally a regulatory carve-out that privileges smaller banks' interests within the Fed's governance structure.
What the text implies
- Raising the asset threshold from $10B to $17B reclassifies approximately $7B in additional banking assets as 'community banks,' potentially reducing regulatory intensity for mid-sized institutions that may pose systemic risks.
- A single board member cannot effectively represent the interests of all community banks while maintaining fiduciary duty to the public; the structure creates a built-in conflict of interest and may institutionalize regulatory capture.
The full analysis lists 5 implications of this text.
Who stands to gain
community banks (under $17B in assets); regional banks transitioning into the expanded $10B–$17B threshold; banking industry trade associations