Bill Summary
The "American Access to Banking Act" is legislation aimed at promoting the establishment of new (de novo) regulated financial institutions, such as banks and credit unions, in the United States. The Act directs federal banking and credit union regulatory agencies to streamline the application processes for these new institutions, making it easier for them to raise capital while ensuring investor protections. Key provisions include:
1. **Streamlined Application Processes**: Agencies are required to review and simplify application forms and reduce the information burden on applicants by coordinating with other federal agencies.
2. **Caseworker Designation**: Each regulatory agency must assign a caseworker to assist applicants through the application process, providing guidance and serving as a primary point of contact.
3. **Mentorship Opportunities**: The Act encourages the creation of mentor-protégé partnerships, where recently approved de novo institutions can provide advice and support to new applicants.
4. **State and Stakeholder Engagement**: Agencies are tasked with developing plans to engage with state regulators and stakeholders, including workshops and guidance materials, to facilitate the creation of new institutions, particularly in underserved areas.
5. **Annual Reporting**: Regulatory agencies must report annually on their actions and any recommendations for improving the process of forming de novo institutions.
Overall, the Act aims to enhance access to banking services by fostering the growth of new financial institutions, particularly those serving rural and minority communities.
Possible Impacts
The "American Access to Banking Act" could have several impacts on individuals and communities. Here are three examples:
1. **Increased Access to Banking Services**: By streamlining the application process for de novo regulated institutions (newly established banks or credit unions), the legislation could lead to the creation of more local banks and credit unions. This would benefit individuals in underserved areas, such as rural communities or low-income neighborhoods, where access to banking services is limited. Increased competition could also lead to better services and lower fees for consumers.
2. **Enhanced Financial Literacy and Support**: The Act requires federal agencies to provide mentorship programs and educational resources to potential de novo institutions. This could result in better-informed banking operators who are equipped to serve their communities effectively. Increased support for applicants could also lead to a rise in institutions that focus on financial education and outreach, ultimately helping individuals improve their financial literacy, manage their finances better, and make more informed financial decisions.
3. **Greater Investment Opportunities**: The legislation emphasizes the review of capital raising methods for de novo institutions while maintaining investor protections. This could enable more community-oriented banks to attract investments from individuals who might not be accredited investors. Consequently, local residents could have the chance to invest in their community banks or credit unions, fostering economic growth and stability in their neighborhoods. This could also encourage a stronger sense of community ownership and involvement in local financial institutions.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4544 Reported in House (RH)]
<DOC>
Union Calendar No. 210
119th CONGRESS
1st Session
H. R. 4544
[Report No. 119-253]
To direct certain Federal banking and credit union agencies to promote
the formation of de novo regulated institutions through the review of
application processes, the review of capital raising by de novo
regulated institutions, and the establishment of various outreach
programs, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 17, 2025
Ms. Waters introduced the following bill; which was referred to the
Committee on Financial Services
September 8, 2025
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed
[Strike out all after the enacting clause and insert the part printed
in italic]
[For text of introduced bill, see copy of bill as introduced on July
17, 2025]
_______________________________________________________________________
A BILL
To direct certain Federal banking and credit union agencies to promote
the formation of de novo regulated institutions through the review of
application processes, the review of capital raising by de novo
regulated institutions, and the establishment of various outreach
programs, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``American Access to Banking Act''.
SEC. 2. STREAMLINING APPLICATION PROCESS AND REVIEW OF CAPITAL RAISING
BY DE NOVO REGULATED INSTITUTIONS.
(a) In General.--Each of the Federal financial institutions
regulatory agencies shall--
(1) for the purpose of streamlining the process of applying
to become a de novo regulated institution, conduct a review of
any application forms related to such process;
(2) to the extent practicable, gather information needed
from applicants seeking to become a de novo regulated
institution from other Federal Government agencies or public
sources to minimize information requests of such applicants;
and
(3) in consultation with the Securities and Exchange
Commission, review how de novo regulated institutions raise
capital while maintaining investor protections, including the
impact of--
(A) general capital raising restrictions; and
(B) capital raising restrictions related to
individuals who are not accredited investors.
(b) Report.--Not later than 1 year after the date of the enactment
of this section, and annually for 5 years thereafter, each of the
Federal financial institutions regulatory agencies shall submit to the
Committee on Financial Services of the House of Representatives and the
Committee on Banking, Housing, and Urban Affairs of the Senate and
publish on a public website of such agency a report that contains--
(1) a description of the actions taken by such agency
pursuant to subsection (a); and
(2) as appropriate, any administrative or legislative
recommendations with respect to the purpose described in
subsection (a)(3).
SEC. 3. IMPROVING COMMUNICATION WITH DE NOVO REGULATED INSTITUTIONS.
(a) In General.--Each of the Federal financial institutions
regulatory agencies shall, at the request of an applicant to become a
de novo regulated institution, designate an employee of the agency as a
caseworker, who may perform such duty in addition to the other duties
of the employee.
(b) Caseworker Duties.--Each caseworker described in subsection (a)
shall, to the maximum extent practicable--
(1) meet with the lead organizers applying to become a de
novo regulated institution to provide a tutorial with respect
to the application process; and
(2) be the primary point of contact of the respective
Federal financial institutions regulatory agency for such
organizers during the application process.
(c) New Caseworker.--Each agency described in subsection (a) may
designate a new caseworker, as appropriate, to support continuity based
on staffing and responsibilities assigned to the current caseworker.
SEC. 4. DE NOVO MENTOR-PROTEGE PARTNERSHIPS.
(a) In General.--At the request of an institution that seeks to
become a de novo regulated institution, each of the Federal financial
institutions regulatory agencies shall, to the maximum extent
practicable, provide a list to such institution of similar types of
institutions that--
(1) were recently approved to become a de novo regulated
institution; and
(2) are interested in volunteering to serve as a mentor to
provide advice about the de novo application process.
(b) Mentorship Information.--Not later than 1 year after the date
of the enactment of this section, each of the Federal financial
institutions regulatory agencies shall provide public information and
directions on how an institution may request a mentor or serve as a
mentor as described in subsection (a).
SEC. 5. STATE AND STAKEHOLDER ENGAGEMENT PLAN.
(a) In General.--Each of the Federal financial institutions
regulatory agencies shall develop a plan to--
(1) regularly consult with State regulators to promote
cooperation between State and Federal banking and credit union
agencies in the creation of de novo regulated institutions,
including responding to any State regulator that requests
assistance on how a State-chartered financial institution can
request Federal insurance;
(2) regularly consult with stakeholders, including
applicants to become de novo regulated institutions and
recently approved regulated institutions, to inform any reforms
that may support the creation of de novo regulated
institutions, including rural institutions, community
development financial institutions, and minority depository
institutions; and
(3) provide guidance, training material, and regular
workshops to assist any interested parties to understand such
agencies processes.
(b) Submission to Congress.--
(1) In general.--Not later than 2 years after the date of
the enactment of this section, and every 5 years thereafter,
each of the Federal financial institutions regulatory agencies
shall submit to the Committee on Financial Services of the
House of Representatives and the Committee on Banking, Housing,
and Urban Affairs of the Senate the respective plan of such
agency described in subsection (a).
(2) Public comment.--With respect to developing the plan
described in subsection (a), each of the Federal financial
institutions regulatory agencies shall--
(A) provide an opportunity for public comments; and
(B) take such public comments into consideration.
SEC. 6. DEFINITIONS.
(a) In General.--In this Act:
(1) Federal banking agency.--The term ``Federal banking
agency'' has the meaning given the term in section 3 of the
Federal Deposit Insurance Act (12 U.S.C. 1813).
(2) Federal financial institutions regulatory agencies.--
The term ``Federal financial institutions regulatory agencies''
has the meaning given the term in section 1003 of the Federal
Financial Institutions Examination Council Act of 1978 (12
U.S.C. 3302).
(3) Regulated institution.--The term ``regulated
institution'' means--
(A) with respect to a Federal banking agency, a
depository institution (as such term is defined in
section 3 of the Federal Deposit Insurance Act (12
U.S.C. 1813)) for which the Federal banking agency is
the appropriate Federal banking agency (as such term is
defined in such section 3); and
(B) with respect to the National Credit Union
Administration, an insured credit union (as such term
is defined in section 101 of the Federal Credit Union
Act (12 U.S.C. 1752)).
(4) State.--The term ``State'' means each of the several
States, the District of Colombia, and each territory of the
United States.
(5) State regulator.--The term ``State regulator'' means--
(A) with respect to a Federal banking agency, a
State banking regulator; and
(B) with respect to the National Credit Union
Administration, the State regulatory agency having
jurisdiction over a State credit union (as such term is
defined in section 101 of the Federal Credit Union Act
(12 U.S.C. 1752)).
(b) Rule of Construction.--For purposes of this Act, the process of
applying to become a de novo regulated institution shall include the
process of applying for Federal deposit insurance, Federal share
insurance, or membership of a Federal reserve bank.
Union Calendar No. 210
119th CONGRESS
1st Session
H. R. 4544
[Report No. 119-253]
_______________________________________________________________________
A BILL
To direct certain Federal banking and credit union agencies to promote
the formation of de novo regulated institutions through the review of
application processes, the review of capital raising by de novo
regulated institutions, and the establishment of various outreach
programs, and for other purposes.
_______________________________________________________________________
September 8, 2025
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed