Congressman Tim Moore Introduces TRUST Act to Ease Regulatory Burden on Community Banks

WASHINGTON, D.C. — This week, Congressman Tim Moore (NC-14), a member of the House Financial Services Committee, introduced H.R. 4478, the Tailored Regulatory Updates for Supervisory Testing Act of 2025 (TRUST Act), a bipartisan bill to raise the consolidated asset threshold for well-managed community banks that qualify for longer examination cycles. The TRUST Act is co-led by Congressman Ritchie Torres (D, NY-15).

“Community banks and credit unions are essential to the success of our local economies — they’re where folks turn when they need help buying a home or starting a business,” said Congressman Moore. “These local financial institutions shouldn’t be hindered by one-size-fits-all regulations that treat them like major banking corporations. I’m proud to lead the TRUST Act to ensure they have the flexibility to focus on serving hardworking families and building new opportunities for economic growth.”

“The TRUST Act will deliver real relief to the community banks and CDFIs that serve as lifelines for neighborhoods like mine in the South Bronx,” said Congressman Torres.  “By extending the 18-month exam cycle to well-managed institutions with up to $6 billion in assets, this bill will give mission-driven lenders the operational flexibility they need to grow, innovate, and reinvest in the communities they serve. I’m proud to lead this bipartisan effort to modernize oversight without compromising on safety or soundness, because one-size-fits-all regulation has never worked for the communities that need banking access the most.”

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).

NCBA President Peter Gwaltney said, “We are grateful to Rep. Moore for his leadership on the TRUST Act and his thoughtful work on banking issues since joining the House Financial Services Committee. Tailored regulation is a cornerstone of our advocacy for the banking industry, and through his sponsorship of the TRUST Act, Rep. Moore is helping to address one of many outdated asset thresholds that must be updated to ensure that community bank supervision aligns with their size and complexity.”

ABA President and CEO Rob Nichols added, “We applaud the TRUST Act’s introduction in the House and thank Rep. Moore and Rep. Torres for their leadership on this issue. This important legislation helps ensure bank regulations do not impose unintended constraints on institutions by reducing regulatory burdens for community banks in the examination process. We look forward to working with Rep. Moore, Rep. Torres, and other stakeholders to move this commonsense bill forward and continue our efforts to ensure all statutory asset thresholds are indexed for growth so they remain relevant and effective over time.”

Read the text of the bill HERE.