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Congress·In Committee·about 2 months ago

House Committee Reviews Main Street Capital Access Act to Ease Rules for Community Banks

Also known as: Main Street Capital Access Act

Legislative Progress

✓ Filed
Review
House
Senate
President

Impacts

Mixed Impacts(9)
Small Business Owner
Neutral
Gig Worker
Neutral
Housing Assistance
Neutral
Farmer Rancher
Neutral
Gun Owner
Neutral
Cannabis User
Neutral
Cryptocurrency Investor
Neutral
Renter
Neutral
Homeowner
Neutral

Key Points

  • Would give newly created banks up to 3 years to fully meet federal capital rules, aiming to make it easier to start new local banks.
  • Sets faster timelines for regulators to act on certain bank applications (often 30 or 90 days), and in some cases approvals would be automatic if the agency misses the deadline.
  • Loosens and updates several rules for smaller banks, including expanding who can use a simpler capital framework and raising the size limit for certain small bank holding company rules to $25 billion.
  • Changes how bank exams work by pushing for clearer, more objective ratings, faster exam reports, and a new independent office where banks can appeal major exam decisions.
  • Adjusts rules affecting bank funding and mergers, including wider deposit exceptions for some community banks and less competition review for mergers that end under $10 billion in assets.
EconomyConsumer ProtectionSmall BusinessLabor EmploymentTaxes

Milestones

2 milestones2 actions
Jan 7, 2026House

Referred to the House Committee on Financial Services.

Jan 7, 2026

Introduced in House

What Happens Next

Projected impacts based on AI analysis

After the bill is enacted

Federal banking agencies start writing rules for a 3-year capital phase-in for new banks.

Starting a new local bank could become easier because capital requirements ramp up over time instead of hitting all at once.

Within 180 days after enactment

Federal Reserve must update the “small bank holding company” policy threshold to $25B.

More bank holding companies could qualify for simpler rules, which may make it easier for community banks to raise money or reorganize.

Within 150 days after enactment

Federal Reserve, OCC, and FDIC complete and publish a report reviewing the Community Bank Leverage Ratio (CBLR).

This sets up later changes that could reduce paperwork for more community banks (or adjust the “simple capital” option).

Proposal within 180 days; final within 1 year after enactment

Federal Reserve, OCC, and FDIC propose and then finalize rules changing the CBLR eligibility and ratio range.

Community banks up to $15B in assets may qualify, and the required leverage ratio range could drop, potentially freeing up capacity to lend.

Within 180 days after enactment

Bank regulators remove “reputational risk” from exam manuals and send Congress a confirmation report.

Banks may feel less pressure from regulators to drop legal businesses or customers based only on bad publicity.

Within 90 days after enactment of the stress-testing section

Federal Reserve issues a rule explaining the models and math used in stress tests and stress capital buffers.

Big banks (and markets watching them) would get more transparency about how stress test results are produced.

Likely within the first year after enactment (needs presidential appointments and staff)

Regulators create the Office of Independent Examination Review and begin taking complaints and appeals.

Banks get a new way to challenge major exam findings, which could change how strict or consistent exams feel over time.

Within 6 months after enactment

FDIC publishes a report on reciprocal deposits.

Could lead to further changes that make it easier (or safer) for community banks to keep large local deposits.

Review starts within 60 days; completed within 240 days; report within 365 days after enactment

Federal Reserve completes a review of the discount window and sends Congress a plan to improve it.

In a bank panic or local bank stress, faster emergency liquidity tools could help prevent sudden bank failures that disrupt customers.

2031-04-01

Starting April 1, 2031, bank-size thresholds tied to GDP begin adjusting every 5 years, with changes taking effect the next January 1.

Over time, more banks could fall into “lighter” rule categories as the economy grows, which could affect supervision and merger rules.

Related News

2 articles
Politico·about 2 months ago

Hill, Barr introduce community banking package

House Financial Services Chair French Hill and Andy Barr introduced the Main Street Capital Access Act, a package of 29 bills aimed at easing regulations on small and mid-size banks. The legislation seeks to codify 'common sense' tailoring based on complexity, risk, and size.

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Inside Mortgage Finance·18 days ago

House Committee Torn on Next Move for Affordable Housing

Rep. French Hill pointed to the Main Street Capital Access Act as a tool for housing affordability. The bill would tailor bank regulation and improve access to funding for small banks, though committee members remain divided on broader housing policy directions.

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Source Information

Document Type

Congressional Bill

Official Title

Main Street Capital Access Act

Bill NumberHR 6955
Congress119th Congress
ChamberHouse of Representatives
Latest ActionReferred to the House Committee on Financial Services.

Sponsor

Cosponsors

(30)
R: 30

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.