TRUST Act of 2025

H.R. 4478, the Tailored Regulatory Updates for Supervisory Testing (TRUST) Act, would reduce regulatory examination burdens on community banks and credit unions. The bill would raise the consolidated asset threshold that allows well-managed community banks to qualify for an 18-month examination cycle instead of the standard 12-month cycle. Currently, banks with up to $3 billion in assets can qualify for this longer examination cycle; the bill would increase this threshold to $10 billion. This change would allow more community banks to reduce the frequency of federal regulatory examinations while maintaining safety and soundness standards. The bill has passed the House Financial Services Committee and is eligible for a floor vote. If enacted, the legislation could provide operational flexibility to community banks, potentially allowing them to redirect resources from compliance activities toward lending and community development activities.