Bill Summary
The "Community Bank Representation Act" is a proposed amendment to the Federal Reserve Act aimed at enhancing the representation of community banks within the Federal Reserve System. The bill specifically mandates that one member of the Board of Governors of the Federal Reserve be appointed with demonstrated experience in working with or supervising community banks. This member will collaborate with the Vice Chairman for Supervision and other relevant board members to create policy recommendations and oversee the regulation of banking organizations with total assets of less than $17 billion.
Key provisions include:
1. **Appointment of a Community Bank Member**: The Chairman of the Board is required to select a member with community banking experience to focus on the supervision and regulation of smaller banking institutions.
2. **Mandatory Reporting**: This community bank member is required to report semi-annually to both the Senate Committee on Banking, Housing, and Urban Affairs and the House Committee on Financial Services regarding the Board's activities related to small banks.
3. **Adjustments for Inflation**: The bill includes a mechanism to adjust asset thresholds for community banks annually based on changes in the nominal gross domestic product (GDP) of the United States, ensuring that the regulatory framework remains relevant as the economy grows.
Overall, the legislation aims to ensure that the perspectives and needs of community banks are adequately represented in federal banking policy and regulation, contributing to a more inclusive financial system.
Possible Impacts
The "Community Bank Representation Act" proposes to amend the Federal Reserve Act to enhance the representation of community banks on the Board of Governors of the Federal Reserve System. Here are three examples of how this legislation could affect people:
1. **Increased Representation of Community Banks:**
By ensuring that a member of the Board of Governors has demonstrated experience working with or supervising community banks, the legislation could lead to policies that better reflect the needs and challenges of smaller banking institutions. This is crucial for regions where community banks play a significant role in local economies, as they often provide more personalized service and support to small businesses and individuals that larger banks may overlook.
2. **Tailored Regulatory Policies:**
With a dedicated member focusing on community banks, the Federal Reserve may develop more tailored supervisory and regulatory policies that align with the realities of smaller banks. This could lead to less burdensome regulations that are more appropriate for institutions with total assets below $17 billion, potentially allowing these banks to operate more efficiently. As a result, community banks might be able to offer better rates and services to their customers, benefiting local residents and businesses.
3. **Transparency and Accountability:**
The requirement for the community bank representative to appear before Congressional committees for semi-annual hearings introduces a layer of transparency and accountability. This setup allows stakeholders, including consumers and community leaders, to understand how the Federal Reserve’s policies are being shaped and the impact on community banks. As a result, it could encourage more public engagement and scrutiny of the Federal Reserve's actions, ultimately fostering trust in the banking system among community bank customers and the general public.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6554 Reported in House (RH)]
<DOC>
Union Calendar No. 458
119th CONGRESS
2d Session
H. R. 6554
[Report No. 119-533]
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.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
December 10, 2025
Ms. De La Cruz introduced the following bill; which was referred to the
Committee on Financial Services
February 25, 2026
Additional sponsors: Mr. Williams of Texas, Mr. Sessions, and Mr. Nunn
of Iowa
February 25, 2026
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
December 10, 2025]
_______________________________________________________________________
A BILL
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.
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 ``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,''.
Union Calendar No. 458
119th CONGRESS
2d Session
H. R. 6554
[Report No. 119-533]
_______________________________________________________________________
A BILL
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.
_______________________________________________________________________
February 25, 2026
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed