TIER Act of 2025
- Bill Number
- H.R. 6553
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Finance and Financial Sector
- Status
- Introduced
- Latest Action
- 2026-02-25: Placed on the Union Calendar, Calendar No. 457.
- Last Updated
- 2026-07-01T20:15:38Z
AI-Generated Summary
Purpose of the Legislation
The Tailoring and Indexing Enhanced Regulations Act of 2025 (TIER Act of 2025) aims to update specific financial regulation thresholds—mainly based on the total assets of banks and financial companies—to reflect growth in the U.S. economy. It adjusts these thresholds for past economic changes and sets up a system for future automatic updates tied to increases in the current-dollar value of U.S. gross domestic product (GDP, a measure of the total value of goods and services produced in the U.S., adjusted for current prices). This prevents old thresholds from becoming too low over time due to economic expansion or inflation, tailoring regulations to the modern economy.
Key Provisions
- Immediate Threshold Updates (Section 2): Raises specific asset-based limits in existing laws to account for historical GDP growth:
- Federal Reserve Act: Increases assessment thresholds for bank holding companies from $100 billion to $150 billion in assets, and adjusts the range for higher assessments from $100–$250 billion to $150–$370 billion.
- Bank Holding Company Act of 1956: Raises the asset threshold for certain financial activities (like merchant banking) from $10 billion to $15 billion.
- Financial Stability Act of 2010 (part of the Dodd-Frank Act): Updates multiple thresholds related to oversight of large financial firms, including:
- Enhanced prudential standards (stricter safety rules) from $250 billion to $370 billion.
- Stress tests (simulated economic crisis checks) from $250 billion to $370 billion, and smaller bank thresholds from $10 billion to $15 billion.
- Early remediation (prompt corrective actions for troubled banks) from $250 billion to $370 billion.
- Resolution planning ("living wills" for failing banks) from $250 billion to $370 billion, with subcategory adjustments (e.g., $100 billion to $150 billion, $50 billion to $75 billion).
- Economic Growth, Regulatory Relief, and Consumer Protection Act (2018): Raises an exemption threshold for certain banks from $250 billion to $370 billion.
- Future Periodic Adjustments (Section 3):
- Section 177 (Added to Financial Stability Act): Starting April 1, 2031, and every 5 years after, the Federal Reserve Board must adjust listed statutory thresholds using a GDP ratio (comparing the most recent full-year GDP to the 2025 level). Adjustments only apply if the ratio exceeds 1 (i.e., GDP has grown), round up to the nearest $5 billion (for under $100 billion) or $50 billion (for $100 billion or more), and take effect January 1 of the next year. The Board publishes changes in the Federal Register by April 5.
- Section 178 (Added to Financial Stability Act): Starting June 30, 2026, and every 5 years, the Federal Reserve Board, Comptroller of the Currency (OCC, which charters national banks), and Federal Deposit Insurance Corporation (FDIC, which insures deposits) must review and adjust non-statutory thresholds in their rules implementing enhanced prudential standards (e.g., rules not directly set by Congress). Adjustments use a similar GDP-based ratio from the threshold's original effective date. Agencies aim for uniform thresholds across their rules, consistent rounding, and report changes to Congress.
Significant Changes to Existing Law
- One-Time Increases: Provides immediate hikes to thresholds set in laws like Dodd-Frank (2010) and the 2018 relief act, which were fixed numbers not previously indexed to economic growth. For example, the $250 billion threshold for "systemically important" banks (those posing major risks if they fail) is now $370 billion, reducing the number of banks subject to strict rules.
- New Indexing Mechanism: Introduces automatic, GDP-linked adjustments for both statutory and regulatory thresholds, a first for these financial laws. This shifts from static numbers to dynamic ones, eliminating the need for Congress to pass frequent updates. It covers assessments, supervision, stress tests, and more, but only applies to specified areas (not all financial rules).
- Agency Responsibilities: Expands agency duties to review and harmonize rules periodically, with mandatory congressional reporting for transparency.
Potential Impacts
- On Government Agencies: Increases workload for the Federal Reserve, OCC, and FDIC due to required reviews and publications every 5 years, but streamlines long-term regulation by automating updates. Could reduce oversight of mid-sized banks, freeing agency resources for larger risks.
- On Citizens: May lower banking costs (e.g., fewer compliance expenses passed to consumers via fees) by easing rules for more institutions, potentially improving access to credit. However, it could slightly raise systemic financial risks if fewer banks face strict safeguards during economic downturns.
- On International Relations: Limited direct effects, but U.S. banks operating abroad might see aligned regulations, influencing global standards set by bodies like the Basel Committee (international banking rules group). No major foreign policy shifts.
Main Stakeholders Affected
- Financial Institutions: Primarily mid- to large-sized banks, bank holding companies, and savings and loan holding companies with assets near the thresholds (e.g., those between $100–$370 billion), who benefit from reduced regulatory burdens like stress tests or capital requirements.
- Regulatory Agencies: Federal Reserve Board (oversees banks and monetary policy), OCC (national bank supervisor), and FDIC (deposit insurer and state bank supervisor), who must implement and adjust rules.
- Congress and Taxpayers: Congress gains oversight via reports; taxpayers benefit indirectly from a more efficient financial system but bear potential costs if risks increase.
- Consumers and Businesses: Everyday bank users and small businesses relying on banking services, affected by changes in stability and costs.
Notable Legal, Constitutional, or Political Implications
- Legal: Strengthens regulatory tailoring under Dodd-Frank by making thresholds adaptive, reducing litigation over outdated rules. The GDP-based formula provides clear, objective criteria for adjustments, limiting agency discretion while requiring congressional notification to prevent overreach.
- Constitutional: Aligns with Congress's authority over commerce and currency (Article I, Section 8); no delegation concerns as agencies follow statutory directives with reporting safeguards.
- Political: Promotes deregulation for economic growth, appealing to pro-business interests, but may draw criticism for weakening post-2008 financial safeguards. The 5-year cycle ensures periodic review without constant political battles, fostering bipartisan stability in banking policy.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (7)
Rep. Meuser, Daniel [R-PA-9], Rep. Williams, Roger [R-TX-25], Rep. Moore, Tim [R-NC-14], Rep. Salazar, Maria Elvira [R-FL-27], Rep. Lucas, Frank D. [R-OK-3], Rep. Sessions, Pete [R-TX-17], Rep. Nunn, Zachary [R-IA-3]
Recent Actions
- 2026-02-25: Placed on the Union Calendar, Calendar No. 457.
- 2026-02-25: Reported (Amended) by the Committee on Financial Services. H. Rept. 119-532.
- 2026-02-25: Reported (Amended) by the Committee on Financial Services. H. Rept. 119-532.
- 2025-12-17: Ordered to be Reported (Amended) by the Yeas and Nays: 33 - 19.
- 2025-12-17: Committee Consideration and Mark-up Session Held
- 2025-12-16: Committee Consideration and Mark-up Session Held
- 2025-12-10: Referred to the House Committee on Financial Services.
- 2025-12-10: Introduced in House
- 2025-12-10: Introduced in House
Bill Versions
- Tailoring and Indexing Enhanced Regulations Act of 2025 — issued 2025-12-10 — PDF (8 pages)
- Tailoring and Indexing Enhanced Regulations Act of 2025 — issued 2026-02-25 — PDF (12 pages)