US House Committee Approves Bank Deregulation Bill Easing Community Bank and Deposit Rules

US community banks primarily serve local businesses, farmers and mortgage borrowers, but face substantial compliance costs despite their smaller size. House Financial Services Committee Chairman French Hill introduced the Main Street Capital Access Act (H.R. 6955) to tailor regulation according to assets and risk, expand local lending and encourage the formation of new banks.

On March 4, 2026, the House Financial Services Committee approved the bill by a 26–16 vote and sent it to the full House. The measure would raise the asset cap for eligibility under the community bank leverage ratio framework to $15 billion from $10 billion and lower the ratio range to 6%–8% from 8%–10%. It would also ease rules governing custodial and reciprocal deposits, bank examinations and newly established banks.