Bill · S. 875· Senate(119-S-875)
FIRM Act
- Introduced
- 3/6/2025
- Last activity
- 3/18/2025 — Placed on Senate Legislative Calendar under General Orders. Calendar No. 32.
- Sponsored by
- Tim Scott
- Cosponsors
- - 12 - 0
- Introduced
- On Calendar
What this bill would do
This bill, known as the "Financial Integrity and Regulation Management Act" or the "FIRM Act," seeks to prevent the political weaponization of Federal banking agencies. It requires these agencies to eliminate "reputational risk" from their supervision and examination of depository institutions. The legislation mandates that agencies tailor regulatory actions to match the specific risk profiles and business models of different institutions to reduce burdens. Additionally, it establishes reduced reporting requirements for certain banks and requires agencies to conduct reviews of existing regulations. Finally, it mandates various reports to Congress regarding the implementation of these changes and the modernization of bank supervision.
Yes· 3 of 6
Would business owners be better off under this?+5
The bill reduces regulatory burdens and prevents the use of subjective reputational risk to target businesses.
Does this make it easier to run a small business?+4
The bill reduces regulatory burdens and implements simplified reporting requirements for certain banks, which benefits smaller institutions.
Is this likely to grow the economy?+3
The bill reduces regulatory burdens and costs for depository institutions through tailored regulation and simplified reporting.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
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Increased Access to Financial Services: The bill aims to ensure that all law-abiding citizens and legal businesses have equal opportunity to obtain financial services regardless of political ideology (Section 2).
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Reduced Regulatory Burdens: By requiring agencies to tailor regulatory actions to an institution's specific risk profile and business model, the bill seeks to limit costs, human resource allocation, and other burdens on institutions (Section 6, paragraph 2).
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Simplified Reporting for Certain Banks: The bill directs agencies to create reduced reporting requirements for banks eligible for the Community Bank Leverage Ratio (Section 6, paragraph b).
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Prevention of Subjective Regulation: The bill aims to stop agencies from using "reputational risk"—which is based on subjective negative publicity—to implement political agendas unrelated to the safety and soundness of a depository institution (Section 2 and Section 4).
Potential Negative Impacts for People
- No explicit negative impacts are stated within the provided text.
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Business Owners+5Good For Low Income Households+1Good For Middle Class Households+1
- Economy And Finance
- Improves Small Business Support+4Improves Economic Growth+3
- Governance And Ideology
- Improves Government Transparency+2
No amendments submitted yet for this bill.
- 3/18/2025
- Committee on Banking, Housing, and Urban Affairs. Reported by Senator Scott SC, under authority of the order of the Senate of 03/14/2025 with an amendment in the nature of a substitute. Without written report.
- Placed on Senate Legislative Calendar under General Orders. Calendar No. 32.
- 3/13/2025
- Committee on Banking, Housing, and Urban Affairs. Ordered to be reported with an amendment in the nature of a substitute favorably.
- 3/6/2025
- Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- 12 Cosponsors added.
- Introduced in Senate
2 bills Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.
Jim BanksRepublican · Indiana
Katie BrittRepublican · Alabama
Mike CrapoRepublican · Idaho
Kevin CramerRepublican · North Dakota
Bill HagertyRepublican · Tennessee
John KennedyRepublican · Louisiana
Cynthia LummisRepublican · Wyoming
Bernie MorenoRepublican · Ohio
David McCormickRepublican · Pennsylvania
Mike RoundsRepublican · South Dakota
Pete RickettsRepublican · Nebraska
Thomas TillisRepublican · North Carolina