To amend the Federal Credit Union Act, the Federal Deposit Insurance Act, the Revised Statutes, and the Federal Reserve Act to require Federal banking agencies to consider economic growth when conducting supervisory functions.

Bill Number

H.R. 6838

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Finance and Financial Sector

Status

Introduced

Latest Action

2025-12-18: Referred to the House Committee on Financial Services.

Last Updated

2026-01-20T14:58:43Z

AI-Generated Summary

Purpose

This bill, H.R. 6838, aims to update key U.S. banking laws by requiring federal banking regulators to factor in economic growth when performing oversight duties. This expands their traditional focus on ensuring the safety and stability of financial institutions to also promote broader economic expansion.

Key Provisions

• Amendments to the Federal Credit Union Act (12 U.S.C. 1752a): Adds a new subsection (g) to Section 102, mandating that the National Credit Union Administration (NCUA) Board consider economic growth during supervisory activities, such as examining credit unions for compliance and risk.
• Amendments to the Federal Deposit Insurance Act (12 U.S.C. 1811): Adds a new subsection (c) to Section 1, requiring the Federal Deposit Insurance Corporation (FDIC) to account for economic growth in its supervisory functions, like monitoring insured banks.
• Amendments to the National Bank Act (Revised Statutes, 12 U.S.C. 1(a)): Modifies Section 324(a) by inserting "and economic growth" after "safety and soundness," obligating the Office of the Comptroller of the Currency (OCC) to include economic growth in its oversight of national banks.
• Amendments to the Federal Reserve Act (12 U.S.C. 225a): Updates Section 2A by adding "and economic growth" to the Federal Reserve's objectives, which currently include maximum employment, stable prices, and moderate long-term interest rates; this applies to the Fed's supervisory role over banks.

Significant Changes to Existing Law

• Previously, these laws emphasized "safety and soundness" (protecting depositors and preventing bank failures) as the primary goals of supervision. The bill introduces economic growth as an explicit, equal consideration, potentially allowing regulators more flexibility in decisions like approving loans or mergers that could stimulate the economy.
• No new enforcement mechanisms or penalties are added; the changes are directive, requiring agencies to integrate growth into their existing processes without altering core supervisory tools.

Potential Impacts

• On Government Agencies: Federal regulators (NCUA, FDIC, OCC, and Federal Reserve) may need to revise guidelines, training, and decision-making frameworks to balance growth with risk management, possibly leading to internal policy shifts or increased coordination.
• On Citizens: Could encourage more lending and investment by banks and credit unions, benefiting businesses, homebuyers, and consumers through easier access to credit and job creation; however, it might heighten financial risks if growth priorities override caution.
• On International Relations: Minimal direct impact, as the bill focuses on domestic U.S. banking supervision; indirect effects could arise if U.S. economic policies influence global financial stability.

Main Stakeholders Affected

• Federal Banking Agencies: NCUA, FDIC, OCC, and the Federal Reserve, who must adapt their supervisory practices.
• Financial Institutions: Banks, credit unions, and national banks, potentially facing less stringent oversight in growth-oriented activities.
• Citizens and Economy: Depositors, borrowers, small businesses, and the broader U.S. economy, which could see stimulated growth but also exposure to instability.
• Congress and Policymakers: Involved in overseeing implementation and future adjustments to these mandates.

Notable Legal, Constitutional, or Political Implications

• Legal: The changes could lead to interpretive challenges in court if economic growth considerations conflict with safety mandates, potentially requiring agencies to justify decisions under administrative law standards like the Administrative Procedure Act.
• Constitutional: Aligns with Congress's authority under Article I to regulate commerce and banking, but might raise questions about delegation of economic policy to unelected regulators without clear guidelines.
• Political: Shifts regulatory focus toward pro-growth policies, which could appeal to business interests but draw criticism for prioritizing expansion over financial stability, influencing future debates on economic regulation.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Barr, Andy [R-KY-6]

Recent Actions

• 2025-12-18: Referred to the House Committee on Financial Services.
• 2025-12-18: Introduced in House
• 2025-12-18: Introduced in House

Bill Versions

• To amend the Federal Credit Union Act, the Federal Deposit Insurance Act, the Revised Statutes, and the Federal Reserve Act to require Federal banking agencies to consider economic growth when conducting supervisory functions. — issued 2025-12-18 — PDF (2 pages)