SMART Act of 2025
- Bill Number
- H.R. 4437
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Finance and Financial Sector
- Status
- Passed House
- Latest Action
- 2026-05-13: Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- Last Updated
- 2026-05-15T03:08:24Z
AI-Generated Summary
Purpose This legislation aims to ease regulatory examination requirements for smaller, well-run financial institutions by alternating full-scope and limited-scope reviews, allowing combined examinations, and promoting efficient examination practices while preserving core oversight.
Key Provisions
- Examination relief for institutions: Applies to insured depository institutions and insured credit unions with $6 billion or less in assets that are well-managed (satisfactory or outstanding composite rating) and well-capitalized. After a full-scope on-site exam, the next exam is limited-scope. Institutions may request combining safety and soundness, consumer compliance, and information technology/cybersecurity exams.
- Exceptions: Relief does not apply if the institution is under a formal enforcement action or if control changed since the last full-scope exam (for banks only).
- Rulemaking: Federal banking agencies and the National Credit Union Administration must issue rules within 12 months to set procedures for limited-scope exams, handle institutions with material changes or compliance issues, and balance reduced burden with safety and soundness.
- Examination practices: For institutions under $6 billion in assets, agencies must use experienced examiners when possible, minimize examiner numbers and visit time, schedule exams conveniently, and provide advance notice of topics.
- Reporting: Agencies must include compliance details and aggregate data (such as examiner experience, numbers used, and time spent) in their annual reports to Congress.
- Rule of construction: Agencies retain authority to conduct off-site monitoring, targeted reviews, or additional full-scope exams if needed for safety or compliance.
Significant Changes to Existing Law The bill amends Section 10(d) of the Federal Deposit Insurance Act and Section 204 of the Federal Credit Union Act to add new subsections on alternating exams, combined reviews, and streamlined practices. These represent targeted modifications to longstanding examination cycles without altering definitions of well-capitalized or consumer compliance exams.
Potential Impacts
- On government agencies: Requires the FDIC, other federal banking agencies, and the National Credit Union Administration to update rules and reporting, potentially streamlining workloads for qualifying institutions while maintaining flexibility for risk-based oversight.
- On citizens: May indirectly support smaller institutions by lowering compliance costs, though core consumer protections remain intact.
- On international relations: No direct effects addressed in the legislation.
Main Stakeholders Affected
- Smaller insured depository institutions and credit unions (under $6 billion in assets).
- Federal banking agencies and the National Credit Union Administration.
- Consumers served by these institutions.
Notable Legal, Constitutional, or Political Implications The changes focus on administrative adjustments to existing statutes with built-in safeguards for oversight, raising no evident constitutional concerns. The emphasis on reduced burden for well-performing institutions reflects a policy shift toward risk-based regulation while requiring ongoing congressional reporting.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Timmons, William R. [R-SC-4]
Cosponsors (1)
Recent Actions
- 2026-05-13: Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- 2026-05-12: Motion to reconsider laid on the table Agreed to without objection.
- 2026-05-12: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H3353-3354)
- 2026-05-12: Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H3353-3354)
- 2026-05-12: DEBATE - The House proceeded with forty minutes of debate on H.R. 4437.
- 2026-05-12: Considered under suspension of the rules. (consideration: CR H3353-3356)
- 2026-05-12: Mr. Hill (AR) moved to suspend the rules and pass the bill, as amended.
- 2025-09-08: Placed on the Union Calendar, Calendar No. 206.
- 2025-09-08: Reported (Amended) by the Committee on Financial Services. H. Rept. 119-249.
- 2025-09-08: Reported (Amended) by the Committee on Financial Services. H. Rept. 119-249.
- 2025-07-22: Ordered to be Reported (Amended) by the Yeas and Nays: 53 - 1.
- 2025-07-22: Committee Consideration and Mark-up Session Held
- 2025-07-16: Referred to the House Committee on Financial Services.
- 2025-07-16: Introduced in House
- 2025-07-16: Introduced in House
Bill Versions
- Supervisory Modifications for Appropriate Risk-based Testing Act of 2025 — issued 2026-05-12 — PDF (14 pages)
- Supervisory Modifications for Appropriate Risk-based Testing Act of 2025 — issued 2025-07-16 — PDF (9 pages)
- Supervisory Modifications for Appropriate Risk-based Testing Act of 2025 — issued 2026-05-13 — PDF (13 pages)
- Supervisory Modifications for Appropriate Risk-based Testing Act of 2025 — issued 2025-09-08 — PDF (14 pages)