House committee passes reg relief bill with more votes set for today

The House Financial Services Committee passed ICBA-supported legislation to provide regulatory relief to certain community banks, with additional votes on ICBA-advocated legislation slated for today.

Committee Vote: During the first of two days of markups, the panel voted 53-1 to pass the Supervisory Modifications for Appropriate Risk-based Testing (SMART) Act of 2025 (H.R. 4437). Introduced by Reps. William Timmons (R-S.C.) and Bill Foster (D-Ill.), the bill would provide well-managed and well-capitalized financial institutions under $6 billion in assets with regulatory relief, such as alternating limited-scope exams and a combined safety-and-soundness exam and consumer compliance exam.

Markup Continues Today: The committee is scheduled to reconvene at 10 a.m. (Eastern time) today to continue the markup. The panel is also scheduled to take up:

• The FDIC Board Accountability Act (H.R. 3446)—introduced by Rep. Bill Huizenga (R-Mich.)—which would require the appointment of a member of the FDIC board of directors with experience in small depository institutions.

• The Tailored Regulatory Updates for Supervisory Testing (TRUST) Act of 2025 (H.R. 4478) from Reps. Tim Moore (R-N.C.) and Ritchie Torres (D-N.Y.), which would raise the consolidated asset threshold from $3 billion to $6 billion for banks to qualify for an 18-month examination cycle.

• Rep. Monica De La Cruz’s (R-Texas) Bringing the Discount Window into the 21st Century Act (H.R. 3390), which would modernize the Federal Reserve's discount window lending programs to improve its effectiveness as a tool for managing liquidity risk.

ICBA View: ICBA urged the committee to pass these bills in a letter ahead of the markup. The regulatory reform bills align with ICBA’s “Repair, Reform, and Thrive” plan and open letter to the 119th Congress.