American Access to Banking Act
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Would direct federal banking and credit union regulators to review and streamline the application process for forming new depository institutions and credit unions, and to establish caseworker assistance, mentor-protege partnerships, and outreach programs for applicants.
The bill aims to lower barriers to entry for new community banks, credit unions, and minority depository institutions by reducing regulatory friction, which proponents argue could expand banking access in underserved areas.
What this bill would do
What it would do
The bill would require federal financial institution regulators to review and simplify the application process for forming new, or "de novo," banks and credit unions. Agencies would be directed to gather needed information from other federal sources rather than burdening applicants, and — in consultation with the SEC — to review how new institutions raise capital while maintaining investor protections. Each agency would have to assign a designated caseworker to any applicant who requests one, and provide lists of recently chartered institutions willing to mentor new applicants. Agencies would also develop plans to coordinate with state regulators and stakeholders, hold workshops, and publish guidance for interested parties. Annual reports to Congress would be required for the first six years.
The bill would also reduce the Federal Reserve's Discretionary Surplus Fund by $24 million, effective September 1, 2036 — a budget offset provision that does not itself fund any program. The bill does not guarantee charter approval, remove existing safety-and-soundness standards, or appropriate direct grants to applicants.
Key provisions
- 1Would require federal financial regulators to review and streamline de novo charter application forms and gather needed information from other agencies to minimize burdens on applicants.
- 2Would require regulators, in consultation with the SEC, to review how new institutions raise capital, including restrictions affecting non-accredited investors, and report any legislative or administrative recommendations.
- 3Would require each agency to designate a caseworker — at the applicant's request — to serve as the primary contact and provide a tutorial on the application process.
- 4Would require agencies to provide lists of recently approved institutions willing to volunteer as mentors and publish public guidance on requesting or serving as a mentor.
- 5Would require each agency to develop a state and stakeholder engagement plan including regular consultations, workshops, and training materials, submitted to Congress every five years.
- 6Would reduce the Federal Reserve Discretionary Surplus Fund by $24,000,000, effective September 1, 2036, as a budget offset.
Who would be affected
Entrepreneurs, community organizations, minority groups, and rural communities seeking to charter new banks or credit unions; federal banking regulators including the FDIC, OCC, Federal Reserve, and NCUA; state banking and credit union regulators; and existing institutions willing to serve as mentors to new applicants. Unbanked and underbanked populations could indirectly benefit if more institutions are successfully chartered.
Why it matters
If enacted, prospective bank and credit union founders — particularly in rural, minority, and underserved communities — would gain dedicated agency support and clearer pathways through what is currently a complex and lengthy charter application process. The changes would not lower safety standards but could meaningfully reduce the time, cost, and uncertainty that discourage new institution formation.
What would change
Changes to existing law
Amends Federal Reserve Act, section 7(a)(3)(A) (12 U.S.C. 289(a)(3)(A)) (Sec. 7)
Reduces the dollar amount specified in the Federal Reserve Discretionary Surplus Fund provision by $24,000,000, effective September 1, 2036.
Agencies directed to act
Effective dates
- Initial annual report to Congress on application process streamlining actions
- Public information on mentor program published by each agency
- State and stakeholder engagement plan submitted to Congress
- Federal Reserve Discretionary Surplus Fund reduction takes effect
Funding and costs
- $24,000,000
Reduction in Federal Reserve Discretionary Surplus Fund, used as a budget offset for the bill.
Congressional Budget Office estimate
CBO estimates that H.R. 4544 would increase the federal deficit by $24 million over the 2026–2035 period, primarily due to higher administrative costs for federal financial regulators.
CBO estimates the bill would increase net direct spending by $12 million over the 2026–2035 period, driven by additional administrative costs for the FDIC, NCUA, and OCC as they conduct rulemaking, publish reports, train staff, and handle new depository institution applications. Revenues would decrease by $12 million over the same period, as added costs at the Federal Reserve reduce remittances to the Treasury (recorded as revenues), resulting in a combined net deficit increase of $24 million over 2026–2035. Discretionary spending at the SEC would be negligible. The bill contains no intergovernmental mandates; it includes a private-sector mandate — potential fee increases on regulated financial institutions — but CBO estimates the cost would fall well below UMRA's annual private-sector threshold of $206 million.
How implementation would work
Each federal financial institutions regulatory agency would conduct internal reviews and produce annual reports for six years. On request, agencies would assign individual caseworkers to new charter applicants and maintain lists of mentor institutions. Each agency would develop a formal state and stakeholder engagement plan — subject to public comment — and submit it to Congress within two years, then every five years. Agencies would also coordinate with the SEC on capital-raising reviews. No rulemaking mandate is specified; the bill largely directs internal process improvements and outreach rather than creating new regulatory requirements for applicants.
Legislative status & sources
Latest action
Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
Official CRS summary
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This bill requires federal financial regulators to review and streamline the application process for the formation of de novo, or new, depository institutions or credit unions.
Regulators must (1) review the application process; (2) to the extent practicable, collect necessary information from other agencies in order to minimize requests for applicant information; and (3) review how de novo financial intuitions raise capital while maintaining investor protections, including the impact of restrictions on raising capital.
At the request of an applicant, regulators must (1) designate an employee as a caseworker to assist in the application process, and (2) provide a list of similar institutions interested in serving as a mentor.
Each regulator must also develop a state and stakeholder engagement plan to assist interested parties with understanding the relevant regulatory processes.
Legislative subjects
Banking and financial institutions regulation; Finance and Financial Sector; Financial services and investments; Intergovernmental relations; Licensing and registrations; State and local government operations
Committee report
H. Rept. 119-253