Congress·Reported·H.R. 2702

FIRM Act

Banking: Removing Reputational Risk from Federal Oversight

about 1 year ago·View on Congress.gov·Read full text

The FIRM Act has been approved by the House Financial Services Committee and is now waiting for further action on the House floor. It is currently moving forward through the legislative process. There are no other scheduled actions at this time.

Legislative Progress

House

Senate

President

Law

Could go either way

The bill has bipartisan support and has already moved out of committee, but it may face challenges in a divided Senate where banking regulations are often a point of heavy debate.

Key Points

The FIRM Act stops federal agencies like the FDIC and the CFPB from using a bank's reputation as a reason to punish them. Currently, regulators can flag a bank for reputational risk if they believe the bank's customers or business choices might cause negative public opinion.
Supporters of the bill argue that regulators have used reputation rules to pressure banks into dropping legal businesses they dislike, such as gun shops or energy companies. This bill aims to ensure that any law-abiding citizen or legal business can get a bank account regardless of political views.
Under this policy, federal regulators would be forced to focus only on a bank's actual financial health and safety. They would be prohibited from using negative news or public opinion to lower a bank's official rating or take enforcement actions against them.
The bill includes a specific exception for security. Regulators can still monitor and take action if a bank is involved in illegal transactions with known terrorist groups or countries that the government has labeled as sponsors of terrorism.
If this bill becomes law, federal banking agencies would have 180 days to scrub their rulebooks and manuals of any mention of reputational risk. They would also have to send a report to Congress proving they made these changes.

Impact Analysis

Govbase has not yet run an impact analysis on this legislation.

Milestones

3 milestones6 actions

Jun 20, 2025House

Placed on the Union Calendar, Calendar No. 131.

The bill is now on the schedule for the full chamber to consider. It's in line for debate and a vote.

Jun 20, 2025House

Reported (Amended) by the Committee on Financial Services. H. Rept. 119-164.

May 21, 2025House

Ordered to be Reported (Amended) by the Yeas and Nays: 33 - 19.

The committee approved this bill and is sending it to the full chamber for a vote. This is a significant step — most bills never get this far.

May 21, 2025House

Committee Consideration and Mark-up Session Held

Apr 8, 2025House

Referred to the House Committee on Financial Services.

Votes

No votes have been recorded for this legislation yet.

News

No related news coverage found for this legislation yet.

Source Information

Document Type

Congressional Bill

Official Title

FIRM Act

Bill NumberHR 2702

Congress119th Congress

ChamberHouse of Representatives

Latest ActionPlaced on the Union Calendar, Calendar No. 131.

Data Sources

Congress.gov

Official legislative information

Read Full Bill Text

Sponsor

Cosponsors

(19)

D: 1R: 18

Analysis generated by AI. Always verify with official sources.