TRUST Act of 2025

Key Points

• The TRUST Act of 2025 changes how often the government inspects smaller banks. Currently, banks with more than $3 billion in assets usually get checked every year. This bill would raise that limit to $6 billion, allowing more banks to qualify for less frequent check-ins.
• Under this plan, if a bank has less than $6 billion in total assets and is considered 'well-managed,' federal regulators would only have to perform a full inspection once every 18 months. This gives these banks an extra six months between deep dives into their records and operations.
• The goal of the bill is to reduce the amount of time and money local and community banks spend on government paperwork. Supporters believe that if a bank is already proven to be safe and stable, the government does not need to audit them as often.
• This change specifically affects 'insured depository institutions,' which are the typical banks where regular people keep their savings and checking accounts. It aims to let these smaller banks focus more on lending to their communities rather than preparing for frequent government visits.

Impact Analysis

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