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Congress·Reported·3 months ago

House Committee Advances TIER Act, Raising Bank Oversight Thresholds to Shield Mid-Size Lenders

Also known as: TIER Act of 2025

Legislative Progress

✓ Filed
Review
House
Senate
President

Impacts

Mixed Impacts(7)
Housing Assistance
Neutral
Homeowner
Neutral
Renter
Neutral
Small Business Owner
Neutral
Gig Worker
Neutral
Retiree
Neutral
Federal Employee
Neutral

Key Points

  • Raises the size cutoffs for tougher bank rules. For example, the $250 billion line moves to $370 billion, $100 billion to $150 billion, $50 billion to $75 billion, and $10 billion to $15 billion.
  • Means fewer mid-size banks would face the heaviest checks, like regular financial tests and detailed emergency plans. This could lower costs for those banks and might make lending a bit easier.
  • Could also reduce watchdog eyes on some banks. If a fast-growing bank runs into trouble, there may be more risk to customers, workers, and local economies.
  • Locks in updates every 5 years. The cutoffs will automatically rise with the overall economy, so banks do not cross lines just because of inflation.
  • Tells federal banking agencies to review and adjust similar cutoffs on the same schedule and publish the new numbers.
EconomyConsumer ProtectionSmall Business

Milestones

3 milestones7 actions
Feb 25, 2026House

Placed on the Union Calendar, Calendar No. 457.

Feb 25, 2026House

Reported (Amended) by the Committee on Financial Services. H. Rept. 119-532.

Dec 17, 2025House

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

Dec 17, 2025House

Committee Consideration and Mark-up Session Held

Dec 16, 2025House

Committee Consideration and Mark-up Session Held

What Happens Next

Projected impacts based on AI analysis

After the bill becomes law and agencies implement the updated thresholds

Regulators begin applying the higher asset thresholds written into law (like $150B and $370B lines).

Some banks may move into a lighter oversight category, which could change how they set fees, grow, or make loans.

2026-06-30

Bank regulators complete the first required review of certain rule-based thresholds tied to section 165 and decide whether to raise them.

This could further reduce or shift compliance requirements for banks, which can indirectly affect customers through rates, fees, and credit availability.

2031-04-01

The Federal Reserve Board uses GDP growth to calculate updated statutory thresholds and publishes the new numbers.

People may see headlines about “the cutoff moved again,” and more banks could avoid being treated like the largest banks as the economy grows in dollar terms.

2031-04-05

The Federal Reserve Board publishes the calculated updated thresholds in the Federal Register.

This is the public notice of the new cutoffs that will later take effect, signaling which banks will be affected.

January 1 of the year after the 2031 calculation (likely 2032-01-01)

The newly calculated higher thresholds take effect for supervision purposes.

Banks’ regulatory “category” could change starting this date, which may affect lending appetite and business plans.

Every 5 years after the first deadlines (2031 for statutory updates; 2026 for rule reviews)

Every 5 years, regulators repeat the GDP-based updates and the rule-threshold reviews.

The asset lines that trigger tougher bank rules would keep moving upward over time as the economy grows in dollar terms.

Related News

3 articles
ABA Banking Journal·3 months ago

House committee advances ABA-backed bills

The House Financial Services Committee advanced the Tailoring and Indexing Enhanced Regulations (TIER) Act (H.R. 6553). The bill, led by Rep. Andy Barr, would index various asset-based thresholds for bank regulations to nominal GDP, focusing on relief for mid-size and regional banks.

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Independent Banker·about 1 year ago

4 Regulatory Developments Coming in 2025

Community bankers are tracking several regulatory shifts in 2025, including legislative efforts like the TIER Act that seek to modernize bank oversight by indexing asset thresholds to economic growth, preventing 'regulatory bracket creep' for growing institutions.

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The Hill·2 months ago

House Financial Services Committee Advances 20 Bills to Reduce Regulatory Burden

House Republicans advanced a slate of bills including the TIER Act, which would raise the asset thresholds that trigger stricter Federal Reserve oversight. Supporters argue it reflects economic reality, while critics warn it could weaken safeguards for regional banks.

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Source Information

Document Type

Congressional Bill

Official Title

TIER Act of 2025

Bill NumberHR 6553
Congress119th Congress
ChamberHouse of Representatives
Latest ActionPlaced on the Union Calendar, Calendar No. 457.

Sponsor

Cosponsors

(7)
R: 7

Analysis generated by AI. While we strive for accuracy, this should not be considered legal or professional advice. Always verify information with official government sources.