TRUST Act of 2025

The TRUST Act (HR4478) was introduced in the House on July 17, 2025, by Rep. Tim Moore (R-NC) and cosponsored by Rep. Ritchie Torres (D-NY). It passed the House on May 12, 2026, under suspension of the rules, and was received in the Senate on May 13, 2026, where it was read twice and referred to the Committee on Banking, Housing, and Urban Affairs. The bill amends the Federal Deposit Insurance Act to raise the asset threshold for less frequent examinations from $3 billion to $6 billion for well-capitalized, well-managed insured depository institutions. This is an authorization bill with no direct funding; it reduces compliance costs for qualifying banks by extending the examination cycle from 12 to 18 months. The legislative path forward requires Senate committee consideration, a floor vote, and presidential signature. The companion bill S3830, introduced in the Senate, increases the probability of passage. The primary beneficiaries are small community banks with assets between $3B and $6B, which will face lower regulatory compliance costs. Publicly traded proxies include the SPDR S&P Regional Banking ETF (KRE), though the impact is diluted by larger holdings. The bill's bipartisan support and smooth House passage suggest a moderate likelihood of enactment, but Senate timing is uncertain.