[House Report 119-533]
[From the U.S. Government Publishing Office]
119th Congress } { Report
HOUSE OF REPRESENTATIVES
2d Session } { 119-533
=======================================================================
COMMUNITY BANK REPRESENTATION ACT
----------------
February 25, 2026.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
----------------
Mr. Hill of Arkansas, from the Committee on Financial Services,
submitted the following
R E P O R T
together with
MINORITY VIEWS
[To accompany H.R. 6554]
The Committee on Financial Services, to whom was referred
the bill (H.R. 6554) to amend the Federal Reserve Act to
specify additional responsibilities of the member of the Board
of Governors of the Federal Reserve System who was appointed as
the member with experience working in or supervising community
banks, and for other purposes, having considered the same,
reports favorably thereon with an amendment and recommends that
the bill as amended do pass.
CONTENTS
Page
Purpose and Summary.............................................. 3
Background and Need for Legislation.............................. 3
Committee Consideration.......................................... 3
Related Hearings................................................. 4
Committee Votes.................................................. 4
Committee Oversight Findings..................................... 6
Performance Goals and Objectives................................. 6
Committee Cost Estimate.......................................... 6
New Budget Authority and CBO Cost Estimate....................... 6
Unfunded Mandates Statement...................................... 6
Earmark Statement................................................ 6
Federal Advisory Committee Act Statement......................... 7
Applicability to the Legislative Branch.......................... 7
Duplication of Federal Programs.................................. 7
Section-by-Section Analysis of the Legislation................... 7
Changes in Existing Law Made by the Bill, as Reported............ 8
Documents Included by Unanimous Consent.......................... 13
Minority Views................................................... 20
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Community Bank Representation Act''.
SEC. 2. COMMUNITY BANK MEMBER OF THE BOARD OF GOVERNORS.
(a) Federal Reserve Act.--Section 10 of the Federal Reserve Act is
amended--
(1) in the first undesignated paragraph (12 U.S.C. 241), by
striking ``having less than $10,000,000,000 in total assets'';
(2) in the second undesignated paragraph (12 U.S.C. 242), by
inserting after ``regulation of such firms.'' the following:
``The Chairman shall select one member of the Board with
demonstrated primary experience working in or supervising
community banks to, in consultation with the Vice Chairman for
Supervision and any other member of the Board with demonstrated
primary experience working in or supervising community banks,
develop policy recommendations for the Board regarding
supervision and regulation of banking organizations supervised
by the Board having less than $17,000,000,000 in total assets,
and to oversee the supervision and regulation of such banking
organizations in consultation with the Vice Chairman for
Supervision and any other member of the Board with demonstrated
primary experience working in or supervising community
banks.'';
(3) in paragraph (12) (12 U.S.C. 247b)--
(A) by striking ``The Vice Chairman for Supervision''
and inserting the following:
``(A) Vice chairman for supervision.--The Vice
Chairman for Supervision'';
(B) by striking ``and at'' and inserting ``at''; and
(C) by adding at the end the following:
``(B) Community bank member.--The member of the Board
with demonstrated primary experience working in or
supervising community banks selected by the Chairman to
develop policy recommendations for the Board regarding
supervision and regulation of banking organizations
supervised by the Board having less than
$17,000,000,000 in total assets, and to oversee the
supervision and regulation of such banking
organizations, if different than the Vice Chairman for
Supervision, shall appear before the Committee on
Banking, Housing, and Urban Affairs of the Senate and
the Committee on Financial Services of the House of
Representatives at semi-annual hearings regarding the
efforts, activities, objectives, and plans of the Board
with respect to the conduct of supervision and
regulation of banking organizations supervised by the
Board having less than $17,000,000,000 in total
assets.''; and
(4) by adding at the end the following:
``(13) Member of the board for community banks annual
threshold adjustment.--
``(A) In general.--At the end of each year for which
the nominal gross domestic product of the United States
increases (a `covered year'), the Board shall adjust
each dollar figure described in the second undesignated
paragraph of this section, paragraph (12)(B) of this
section, and section 1004(a)(3) of the Federal
Financial Institutions Examination Council Act of 1978
by a percentage equal to the percentage increase (if
any) between--
``(i) the nominal gross domestic product of
the United States for the year, during the
preceding 5 years, with respect to which the
nominal gross domestic product of the United
States was the highest; and
``(ii) the nominal gross domestic product of
the United States for the covered year.
``(B) Determination of gdp.--In this paragraph, the
Board shall use nominal gross domestic product
statistics determined by the Bureau of Economic
Analysis.''.
(b) Federal Financial Institutions Examination Council Act of 1978.--
Section 1004(a)(3) of the Federal Financial Institutions Examination
Council Act of 1978 (12 U.S.C. 3303(a)(3)) is amended by adding at the
end the following: ``and such Governor shall consult with the Governor
with demonstrated primary experience working in or supervising
community banks selected by the Chairman of the Board to develop policy
recommendations for the Board regarding supervision and regulation of
banking organizations supervised by the Board having less than
$17,000,000,000 in total assets, and to oversee the supervision and
regulation of such banking organizations,''.
Purpose and Summary
H.R. 6554, the Community Bank Representation Act, was
introduced on December 10, 2025, by Republican Representative
Monica De La Cruz (TX-15). The bill expands the role of the
community bank representative on the Federal Reserve Board
(FRB) to provide them with a more explicit role in the
supervision and regulation of banking organizations with less
than $17 billion in total assets that the FRB supervises.
Specifically, the bill authorizes the community bank
representative to oversee the supervision and regulation of
community banks in consultation with the Vice Chairman for
Supervision and any other member of the FRB with community bank
experience; offer policy recommendations to the FRB; testify
twice a year before the Senate Committee on Banking, Housing,
and Urban Affairs and House Committee on Financial Services;
and consult with the Governor designated by the Chairman of the
FRB to serve on the Federal Financial Institutions Examination
Council, if different from the community bank representative.
The bill updates the $17 billion figure for nominal GDP
annually.
Background and Need for Legislation
The Terrorism Risk Insurance Program Reauthorization Act of
2014\1\, which passed the House on an overwhelmingly bipartisan
basis by a vote of 417 to 7, included a provision that requires
the President to appoint at least one member to the FRB with
demonstrated primary experience working in or supervising
community banks. This important step recognized the need for
community banks to have a voice on the FRB given that it is the
primary supervisor for bank holding companies at the holding
company level and state-chartered banks who are members of the
Federal Reserve System.\2\ As of 2025, they supervise 3,367
community banking organizations with $3 trillion in assets.\3\
For comparison, the FRB only supervises 100 regional banking
organizations, 173 large and foreign banking organizations, and
eight global systemically important banking organizations.\4\
---------------------------------------------------------------------------
\1\S. 2244, https://www.congress.gov/bill/113th-congress/senate-
bill/2244.
\2\Labonte, Marc. Bank Holding Companies: Background and Issues for
Congress, Congressional Research Service (Dec. 5, 2024), https://
crsreports.congress.gov/product/pdf/R/R48291/.
\3\BD. OF GOVS. OF THE FED. RESERVE SYSTEM, SUPERVISION AND
REGULATION REPORT (Dec. 2025).
\4\Id.
---------------------------------------------------------------------------
Despite the FRB's role in the supervision of community
banks and community bank holding companies, only the Vice Chair
for Supervision, who may lack experience with community banks
and thus an understanding of the unique challenges they face,
has an explicit statutory role to issue recommendations to the
full FRB on supervision and regulation and testify before
Congress semiannually. This bill ensures that the existing
community bank representative has a seat at the table when it
comes to the supervision and regulation of community banks.
Committee Consideration
119TH CONGRESS
On December 10, 2025, Representative De La Cruz introduced
H.R. 6554, the Community Bank Representation Act.
Representatives Roger Williams (R-TX), Pete Sessions (R-TX),
and Zach Nunn (R-IA) were added subsequently as cosponsors.
The bill was referred solely to the Committee on Financial
Services. A draft version of H.R. 6554 was attached to the July
15, 2025, hearing titled ``Dodd-Frank Turns 15: Lessons Learned
and the Road Ahead.''
On December 16, 2025, the Committee on Financial Services
met in open session to consider, among others, H.R. 6554. The
Committee ordered H.R. 6554, as amended, to be reported with a
favorable recommendation to the House of Representatives.
Related Hearings
Pursuant to clause 3(c)(6) of rule XIII of the Rules of the
House of Representatives, the following hearing was used to
develop H.R. 6554:
On July 15, 2025, the Committee on Financial Services held
a hearing titled, ``Dodd-Frank Turns 15: Lessons Learned and
the Road Ahead.'' The Committee heard testimony from: the
Honorable Ken Bentsen, President and CEO, Securities Industry
and Financial Markets Association; Mrs. Lindsey Johnson,
President and CEO, Consumer Bankers Association; Mr. Tom
Quaadman, Chief of Government Affairs and Public Policy,
Investment Company Institute; Dr. Paul H. Kupiec, Senior
Fellow, American Enterprise Institute; and Mr. Dennis Kelleher,
Co-founder, President, and Chief Executive Officer, Better
Markets.
Committee Votes
Clause 3(b) of rule XIII of the Rules of the House of
Representatives requires the Committee Report to include record
votes on the motion to report legislation and amendments
thereto.
On December 16, 2025, the Committee ordered H.R. 6554, as
amended, to be reported favorably to the House by a recorded
vote of 29 yeas and 22 nays, a quorum being present. (Record
Vote No. FC-211).
Before the question to report was called, the Committee
adopted an amendment in the nature of a substitute offered by
Representative De La Cruz, designated DELACR_056, which made
minor edits and technical changes. The amendment was adopted by
voice vote.
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Committee Oversight Findings
Pursuant to clause 3(c) of rule XIII of the Rules of the
House of Representatives, the findings and recommendations of
the Committee, based on oversight activities under clause
2(b)(1) of rule X of the Rules of the House of Representatives
are incorporated in the descriptive portions of this report.
Performance Goals and Objectives
Pursuant to clause 3(c)(4) of rule XIII of the Rules of the
House of Representatives, the goal of H.R. 6554 is to provide
community banks a greater voice in shaping agency policy
through a more explicit role for the community bank
representative at the FRB.
Committee Cost Estimate
Clause 3(d)(1) of rule XIII of the Rules of the House of
Representatives requires an estimate and a comparison of the
costs that would be incurred in carrying out H.R. 6554. The
Committee has requested but not received a cost estimate from
the Director of the Congressional Budget Office. However,
pursuant to clause 3(d)(1) of rule XIII of the Rules of the
House of Representatives, the Committee will adopt as its own
the cost estimate by the Director of the Congressional Budget
Office once it has been prepared.
New Budget Authority and CBO Cost Estimate
With respect to the requirements of clause 3(c)(2) of rule
XIII of the Rules of the House of Representatives and section
308(a) of the Congressional Budget Act of 1974 and with respect
to requirements of clause 3(c)(3) of rule XIII of the Rules of
the House of Representatives and section 402 of the
Congressional Budget Act of 1974, the Committee will adopt as
its own the cost estimate for the bill prepared by the Director
of the Congressional Budget Office. However, a cost estimate
was not made available to the Committee in time for the filing
of this report. The Chairman of the Committee shall cause such
estimate to be printed in the Congressional Record upon its
receipt by the Committee.
Unfunded Mandates Statement
The Committee has requested but not received from the
Director of the Congressional Budget Office an estimate of the
Federal mandates pursuant to section 423 of the Unfunded
Mandates Reform Act. The Chairman of the Committee shall cause
such estimate to be printed in the Congressional Record upon
its receipt by the Committee.
Earmark Statement
In compliance with clause 9 of rule XXI of the Rules of the
House of Representatives, this bill, as reported, contains no
congressional earmarks, limited tax benefits, or limited tariff
benefits as defined in clause 9(e), 9(f), or 9(g) of rule XXI.
Federal Advisory Committee Act Statement
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act were created by this
legislation.
Applicability to the Legislative Branch
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act.
Duplication of Federal Programs
Pursuant to clause 3(c)(5) of rule XIII of the Rules of the
House of Representatives, the Committee states that no
provision of the bill establishes or reauthorizes a program of
the Federal Government known to be duplicative of another
Federal program, including any program that was included in a
report to Congress pursuant to section 21 of the Public Law
111-139 or the most recent Catalog of Federal Domestic
Assistance.
Section-by-Section Analysis of the Legislation
Section 1. Short title
Section 1 provides the short title is the ``Community Bank
Representation Act''.
Section 2. Community bank member of the Board of Governors
Section 2 amends the Federal Reserve Act to increase the
threshold for the FRB member with demonstrated primary
experience working in or supervising community banks from less
than $10 billion to less than $17 billion. This section amends
the Federal Reserve Act to require the Chairman of the Board to
select one member of the Board with demonstrated primary
experience working in or supervising community banks to consult
with the Vice Chairman for Supervision to develop policy
recommendations for the Board regarding the supervision and
regulation of banks supervised by the Board with less than $17
billion.
Section 2 amends the Federal Reserve Act to require the
member of the Board with demonstrated primary experience
working in or supervising community banks, if different than
the Vice Chair for Supervision, to testify before Congress at
semi-annual hearings.
Section 2 also indexes the $17 billion threshold to nominal
gross domestic product (GDP) at the end of each year for which
the nominal GDP of the US increases.
Section 2 amends the Federal Financial Institutions
Examination Council Act of 1978 to require the member chosen by
the Chair of the Board to serve on the Federal Financial
Institutions Examination Council to consult with the Governor
with demonstrated primary experience working in or supervising
community banks to develop policy recommendations for the Board
regarding the supervision and regulation of banks supervised by
the Board having less than $17 billion in assets.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italics, and existing law in which no
change is proposed is shown in roman):
FEDERAL RESERVE ACT
* * * * * * *
board of governors of the federal reserve system
Sec. 10. The Board of Governors of the Federal Reserve System
(hereinafter referred to as the ``Board'') shall be composed of
seven members, to be appointed by the President, by and with
the advice and consent of the Senate, after the date of
enactment of the Banking Act of 1935, for terms of fourteen
years except as hereinafter provided, but each appointive
member of the Federal Reserve Board in office on such date
shall continue to serve as a member of the Board until February
1, 1936, and the Secretary of the Treasury and the Comptroller
of the Currency shall continue to serve as members of the Board
until February 1, 1936. In selecting the members of the Board,
not more than one of whom shall be selected from any one
Federal Reserve district, the President shall have due regard
to a fair representation of the financial, agricultural,
industrial, and commercial interests, and geographical
divisions of the country. In selecting members of the Board,
the President shall appoint at least 1 member with demonstrated
primary experience working in or supervising community banks
[having less than $10,000,000,000 in total assets]. The members
of the Board shall devote their entire time to the business of
the Board and shall each receive an annual salary of $15,000,
payable monthly, together with actual necessary traveling
expenses.
The members of the Board shall be ineligible during the time
they are in office and for two years thereafter to hold any
office, position, or employment in any member bank, except that
this restriction shall not apply to a member who has served the
full term for which he was appointed. Upon the expiration of
the term of any appointive member of the Federal Reserve Board
in office on the date of enactment of the Banking Act of 1935,
the President shall fix the term of the successor to such
member at not to exceed fourteen years, as designated by the
President at the time of nomination, but in such manner as to
provide for the expiration of the term of not more than one
member in any two-year period, and thereafter each member shall
hold office for a term of fourteen years from the expiration of
the term of his predecessor, unless sooner removed for cause by
the President. Of the persons thus appointed, 1 shall be
designated by the President, by and with the advice and consent
of the Senate, to serve as Chairman of the Board for a term of
4 years, and 2 shall be designated by the President, by and
with the advice and consent of the Senate, to serve as Vice
Chairmen of the Board, each for a term of 4 years, 1 of whom
shall serve in the absence of the Chairman, as provided in the
fourth undesignated paragraph of this section, and 1 of whom
shall be designated Vice Chairman for Supervision. The Vice
Chairman for Supervision shall develop policy recommendations
for the Board regarding supervision and regulation of
depository institution holding companies and other financial
firms supervised by the Board, and shall oversee the
supervision and regulation of such firms. The Chairman shall
select one member of the Board with demonstrated primary
experience working in or supervising community banks to, in
consultation with the Vice Chairman for Supervision and any
other member of the Board with demonstrated primary experience
working in or supervising community banks, develop policy
recommendations for the Board regarding supervision and
regulation of banking organizations supervised by the Board
having less than $17,000,000,000 in total assets, and to
oversee the supervision and regulation of such banking
organizations in consultation with the Vice Chairman for
Supervision and any other member of the Board with demonstrated
primary experience working in or supervising community banks.
The chairman of the Board, subject to its supervision, shall be
its active executive officer. Each member of the Board shall
within fifteen days after notice of appointment make and
subscribe to the oath of office. Upon the expiration of their
terms of office, members of the Board shall continue to serve
until their successors are appointed and have qualified. Any
person appointed as a member of the Board after the date of
enactment of the Banking Act of 1935 shall not be eligible for
reappointment as such member after he shall have served a full
term of fourteen years.
The Board of Governors of the Federal Reserve System shall
have power to levy semiannually upon the Federal reserve banks,
in proportion to their capital stock and surplus, an assessment
sufficient to pay its estimated expenses and the salaries of
its members and employees for the half year succeeding the
levying of such assessment, together with any deficit carried
forward from the preceding half year, and such assessments may
include amounts sufficient to provide for the acquisition by
the Board in its own name of such site or building in the
District of Columbia as in its judgment alone shall be
necessary for the purpose of providing suitable and adequate
quarters for the performance of its functions. After September
1, 2000, the Board may also use such assessments to acquire, in
its own name, a site or building (in addition to the facilities
existing on such date) to provide for the performance of the
functions of the Board. After approving such plans, estimates,
and specifications as it shall have caused to be prepared, the
Board may, notwithstanding any other provision of law, cause to
be constructed on any site so acquired by it a building or
buildings suitable and adequate in its judgment for its
purposes and proceed to take all such steps as it may deem
necessary or appropriate in connection with the construction,
equipment, and furnishing of such building or buildings. The
Board may maintain, enlarge, or remodel any building or
buildings so acquired or constructed and shall have sole
control of such building or buildings and space therein.
The principal offices of the Board shall be in the District
of Columbia. At meetings of the Board the chairman shall
preside, and, in his absence, the vice chairman shall preside.
In the absence of the chairman and the vice chairman, the Board
shall elect a member to act as chairman pro tempore. The Board
shall determine and prescribe the manner in which its
obligations shall be incurred and its disbursements and
expenses allowed and paid, and may leave on deposit in the
Federal Reserve banks the proceeds of assessments levied upon
them to defray its estimated expenses and the salaries of its
members and employees, whose employment, compensation, leave,
and expenses shall be governed solely by the provisions of this
Act, specific amendments thereof, and rules and regulations of
the Board not inconsistent therewith; and funds derived from
such assessments shall not be construed to be Government funds
or appropriated moneys. No member of the Board of Governors of
the Federal Reserve System shall be an officer or director of
any bank, banking institution, trust company, or Federal
Reserve bank or hold stock in any bank, banking institution, or
trust company; and before entering upon his duties as a member
of the Board of Governors of the Federal Reserve System he
shall certify under oath that he has complied with this
requirement, and such certification shall be filed with the
secretary of the Board. Whenever a vacancy shall occur, other
than by expiration of term, among the six members of the Board
of Governors of the Federal Reserve System appointed by the
President as above provided, a successor shall be appointed by
the President, by and with the advice and consent of the
Senate, to fill such vacancy, and when appointed he shall hold
office for the unexpired term of his predecessor.
The President shall have power to fill all vacancies that
may happen on the Board of Governors of the Federal Reserve
System during the recess of the Senate by granting commissions
which shall expire with the next session of the Senate.
Nothing in this Act contained shall be construed as taking
away any powers heretofore vested by law in the Secretary of
the Treasury which relate to the supervision, management, and
control of the Treasury Department and bureaus under such
department, and wherever any power vested by this Act in the
Board of Governors of the Federal Reserve System or the Federal
reserve agent appears to conflict with the powers of the
Secretary of the Treasury, such powers shall be exercised
subject to the supervision and control of the Secretary.
The Board of Governors of the Federal Reserve System shall
annually make a full report of its operations to the Speaker of
the House of Representatives, who shall cause the same to be
printed for the information of the Congress. The report
required under this paragraph shall include the reports
required under section 707 of the Equal Credit Opportunity Act,
section 18(f)(7) of the Federal Trade Commission Act, section
114 of the Truth in Lending Act, and the tenth undesignated
paragraph of this section.
No Federal Reserve bank may authorize the acquisition or
construction of any branch building, or enter into any contract
or other obligation for the acquisition or construction of any
branch building, without the approval of the Board.
The Board of Governors of the Federal Reserve System shall
keep a complete record of the action taken by the Board and by
the Federal Open Market Committee upon all questions of policy
relating to open-market operations and shall record therein the
votes taken in connection with the determination of open-market
policies and the reasons underlying the action of the Board and
the Committee in each instance. The Board shall keep a similar
record with respect to all questions of policy determined by
the Board, and shall include in its annual report to the
Congress a full account of the action so taken during the
preceding year with respect to open-market policies and
operations and with respect to the policies determined by it
and shall include in such report a copy of the records required
to be kept under the provisions of this paragraph.
(12) Appearances before congress.--[The Vice Chairman
for Supervision]
(A) Vice chairman for supervision._The Vice
Chairman for Supervision shall appear before
the Committee on Banking, Housing, and Urban
Affairs of the Senate and the Committee on
Financial Services of the House of
Representatives [and at] at semi-annual
hearings regarding the efforts, activities,
objectives, and plans of the Board with respect
to the conduct of supervision and regulation of
depository institution holding companies and
other financial firms supervised by the Board.
(B) Community bank member.--The member of the
Board with demonstrated primary experience
working in or supervising community banks
selected by the Chairman to develop policy
recommendations for the Board regarding
supervision and regulation of banking
organizations supervised by the Board having
less than $17,000,000,000 in total assets, and
to oversee the supervision and regulation of
such banking organizations, if different than
the Vice Chairman for Supervision, shall appear
before the Committee on Banking, Housing, and
Urban Affairs of the Senate and the Committee
on Financial Services of the House of
Representatives at semi-annual hearings
regarding the efforts, activities, objectives,
and plans of the Board with respect to the
conduct of supervision and regulation of
banking organizations supervised by the Board
having less than $17,000,000,000 in total
assets.
(13) Member of the board for community banks annual
threshold adjustment.--
(A) In general.--At the end of each year for
which the nominal gross domestic product of the
United States increases (a ``covered year''),
the Board shall adjust each dollar figure
described in the second undesignated paragraph
of this section, paragraph (12)(B) of this
section, and section 1004(a)(3) of the Federal
Financial Institutions Examination Council Act
of 1978 by a percentage equal to the percentage
increase (if any) between--
(i) the nominal gross domestic
product of the United States for the
year, during the preceding 5 years,
with respect to which the nominal gross
domestic product of the United States
was the highest; and
(ii) the nominal gross domestic
product of the United States for the
covered year.
(B) Determination of gdp.--In this paragraph,
the Board shall use nominal gross domestic
product statistics determined by the Bureau of
Economic Analysis.
* * * * * * *
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FEDERAL FINANCIAL INSTITUTIONS EXAMINATION
COUNCIL ACT OF 1978
* * * * * * *
TITLE X--FEDERAL FINANCIAL INSTITUTIONS
EXAMINATION COUNCIL
* * * * * * *
establishment of the council
Sec. 1004. (a) There is established the Financial
Institutions Examination Council which shall consist of--
(1) the Comptroller of the Currency,
(2) the Chairman of the Board of Directors of the
Federal Deposit Insurance Corporation,
(3) a Governor of the Board of Governors of the
Federal Reserve System designated by the Chairman of
the Board, and such Governor shall consult with the
Governor with demonstrated primary experience working
in or supervising community banks selected by the
Chairman of the Board to develop policy recommendations
for the Board regarding supervision and regulation of
banking organizations supervised by the Board having
less than $17,000,000,000 in total assets, and to
oversee the supervision and regulation of such banking
organizations,
(4) the Director of the Consumer Financial Protection
Bureau,
(5) the Chairman of the National Credit Union
Administration Board, and
(6) the Chairman of the State Liaison Committee.
(b) The members of the Council shall select the first
chairman of the Council. Thereafter the chairmanship shall
rotate among the members of the Council.
(c) The term of the Chairman of the Council shall be two
years.
(d) The members of the Council may, from time to time,
designate other officers or employees of their respective
agencies to carry out their duties on the Council.
(e) Each member of the Council shall serve without additional
compensation but shall be entitled to reasonable expenses
incurred in carrying out his official duties a such a member.
* * * * * * *
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MINORITY VIEWS
H.R. 6554 would needlessly complicate an already complex
bank regulatory framework with three Federal prudential
regulators by further bifurcating supervision and regulation
duties at the Board of Governors of the Federal Reserve System
(``Fed''), isolating most but not all community bank regulation
and supervision. At the Fed Chair's discretion, those duties
could remain with the Vice Chair of Supervision (who is
nominated by the President and confirmed by Senate) or be given
to a separate Fed Governor with demonstrated community bank
experience (however, they would not be nominated by the
President or confirmed by the Senate for this leadership role),
who would be required to testify before Congress semiannually
alongside the Vice Chair of Supervision.
The bill would also increase the definition of a community
bank with an asset cap of $17 billion (instead of $10 billion)
and continue to index that threshold up every year based on
nominal GDP growth, a metric that Trump's FDIC recently
rejected in preference for inflation-based measures. The
resulting framework would create a new rift in regulatory
capital policy, whereby the Fed Chair could appoint a governor
to drive capital policy for both community banks eligible for
the Community Bank Leverage Ratio (currently those with less
than $10 billion in assets, though a bill has been introduced
to increase this threshold to $15 billion) and, oddly, for
banks that are too large for the CBLR capital framework but
under $17 billion in assets, while the Vice Chair for
Supervision would be responsible for banks above $17 billion.
Moreover, the bill draws lines solely based on asset size and
does not consider or permit the Fed to consider a bank's risk
profile or business model in determining how supervisory and
regulatory responsibility should be allocated. Following the
2008 financial crisis, Congress enacted the Dodd-Frank Wall
Street Reform and Consumer Protection Act (``Dodd-Frank'').
Dodd-Frank included a number of reforms to strengthen how
banks were regulated, including getting rid of the Office of
Thrift Supervision (``OTS'') which was the weakest of bank
regulators. The law also created the Vice Chair of Supervision
position, a Presidentially-appointed and Senate-confirmed
position, to the Fed. This position was designed to ensure
there was one designated Governor to lead the Fed's supervisory
and regulatory duties, something that was not prioritized prior
to the 2008 financial crisis. Later, in 2015, Congress enacted
another statue to require the President to nominate one Board
Governor with community bank experience to ensure that
perspective was included in the 7-member Board of Governors.
The first person to serve in that capacity was Michelle Bowman,
who first served as Governor starting in 2018 and became Vice
Chair of Supervision this year.
Instead of streamlining the bank regulatory system, this
bill seems designed to relitigate past disputes when Bowman
disagreed with the direction of the Fed's supervision and
regulation when she served as Governor and Michael Barr served
as Vice Chair of Supervision. Bowman would routinely dissent
from proposals advanced by Barr, and this bill would have
allowed her to have a co-equal role without going through a
Senate confirmation process.\1\
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\1\See Wall Street Journal, How Trump's Ally at the Fed Is Remaking
Bank Oversight (Jan. 25, 2026); and New York Times, The Fed Is Cutting
Bank Oversight. Critics See Risks. (Nov. 17, 2025).
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It is worth observing that the other banking regulators--
the Federal Deposit Insurance Corporation (``FDIC'') and Office
of the Comptroller of the Currency (``OCC'')--do not have a
bifurcation of duties between principals when it comes to
regulating and supervising community banks compared to larger
banks. While there are deputies and staff that carry out many
of the supervisory and regulatory work, the OCC is led by one
Comptroller setting the direction of the agency. The FDIC is
run by a 5-member board, but again, there is no bifurcation
between FDIC Board members where one is given authority over
community banks and another board member handles other
regulated entities.
H.R. 6554 is opposed by Americans for Financial Reform.
Furthermore, just two years after the Fed's supervisory
failures contributed to the failure of Silicon Valley Bank
(``SVB''), this bill does nothing to address those concerns. At
a time when the President has engaged in an unprecedented
attack on the Fed's independence, with his attacks on Chair
Powell and his attempted firing of Governor Lisa Cook, this
bill would elevate a Fed official and give them new duties
without giving the Senate it's typical advice and consent role
in the same way it has with the Vice Chair of Supervision.
For these reasons, we oppose H.R. 6554.
Sincerely,
Maxine Waters,
Ranking Member.
Al Green,
Bill Foster,
Joyce Beatty,
Rashida Tlaib,
Sylvia R. Garcia,
Nikema Williams,
Members of Congress.
[all]