U.S. House Unanimously Passes Congressman Tim Moore’s TRUST Act to Ease Regulatory Burden on Community Banks
WASHINGTON, D.C. — This week, the U.S. House passed Congressman Tim Moore’s H.R. 4478, the Tailored Regulatory Updates for Supervisory Testing Act of 2025 (TRUST Act), on a unanimous voice vote. This bipartisan legislation updates outdated banking regulations by raising asset limits that have not kept pace with the growth of the economy, ensuring well-managed community banks are not subject to the same examination requirements as the nation’s largest financial institutions.
Congressman Moore introduced this legislation alongside Congressman Ritchie Torres (D, NY-15), both members serve on the House Financial Services Committee.
“Passing the TRUST Act is a big step in easing regulations on small community banks, so they can serve their customers instead of dealing with the same rules meant to keep Wall Street giants in line,” said Congressman Moore. “This bill is a commonsense measure to modernize outdated laws, while still ensuring responsible banking practices and strong oversight of our financial system. The TRUST Act means well-managed small-town banks will spend less time with federal paperwork, and more time helping families.”
Specifically, the TRUST Act will raise the asset limit for community banks that qualify for a longer 18-month examination cycle from $3 billion to $6 billion. Right now, most banks are examined every 12 months, but well-managed institutions can qualify for a longer cycle if they have a good track record and aren’t under any enforcement actions.
This legislation would benefit four banks in North Carolina that currently meet the criteria for extended supervision. By reducing the frequency of examinations for responsible institutions, the TRUST Act allows these banks to spend more time serving their customers and communities, rather than navigating duplicative regulatory reviews.
This bill is supported by outside groups, including the American Bankers Association (ABA), the North Carolina Bankers Association (NCBA), and the Independent Community Bankers of America (ICBA).