Community Bank Representation Act

Bill Summary: Community Bank Representation Act (H.R. 6554)

Overview

The Community Bank Representation Act (H.R. 6554) is a legislative proposal designed to strengthen the voice and influence of community banks within the Federal Reserve Board (FRB). The bill formalizes the responsibilities of the Board member appointed with community banking experience, ensuring that the specific needs and challenges of smaller banking organizations are explicitly integrated into the Federal Reserve's supervisory and regulatory policies.

Main Purpose and Intent

The primary intent of the bill is to ensure that community banks have a "seat at the table." Currently, while the law requires the appointment of a Board member with community banking experience, the explicit statutory authority to develop policy recommendations and testify before Congress is concentrated in the Vice Chairman for Supervision. H.R. 6554 seeks to correct this imbalance by granting the community bank representative a formal, statutory role in overseeing the regulation of smaller banks.

Key Provisions

1. Formalized Supervisory Role

The bill requires the FRB Chairman to select one member with demonstrated primary experience in community banking to:
* Develop Policy Recommendations: Create supervisory and regulatory recommendations specifically for banking organizations with less than $17 billion in total assets.
* Oversee Regulation: Directly oversee the supervision and regulation of these organizations, working in consultation with the Vice Chairman for Supervision.

2. Congressional Accountability

If the selected community bank representative is different from the Vice Chairman for Supervision, they must now appear before the Senate Committee on Banking, Housing, and Urban Affairs and the House Committee on Financial Services at semi-annual hearings. They will testify on the Board's activities, objectives, and plans regarding community banks.

3. Updated Asset Thresholds and GDP Indexing

• Increased Threshold: The bill raises the asset threshold for the community bank representative's purview from $10 billion to $17 billion.
• Annual Adjustment: To prevent the threshold from becoming obsolete due to economic growth, the bill mandates an annual adjustment based on the percentage increase in the nominal Gross Domestic Product (GDP) of the United States (as determined by the Bureau of Economic Analysis).

4. Inter-Agency Coordination

The bill amends the Federal Financial Institutions Examination Council Act of 1978 to require that the Governor serving on the Council consult with the community bank representative when developing policy for institutions with less than $17 billion in assets.

Who is Affected?

• Community Banks: Banking organizations with assets under $17 billion (and those that fall under the GDP-adjusted threshold) will have a dedicated advocate within the Federal Reserve.
• Federal Reserve Board of Governors: The internal hierarchy of the FRB will shift to include a shared responsibility for supervision between the Vice Chairman for Supervision and the designated community bank member.
• Congressional Committees: The House Financial Services and Senate Banking committees will gain a direct line of testimony from a community banking expert.

Procedural Status and Timeline

• Introduced: December 10, 2025, by Rep. Monica De La Cruz (TX-15).
• Committee Action: Reported favorably by the Committee on Financial Services on February 25, 2026, following a recorded vote of 29 yeas to 22 nays.
• Current Status: Committed to the Committee of the Whole House on the State of the Union.