Andy Barr (R-KY)
Bank Failure Prevention Act of 2025
A Republican bill with 3 Republican cosponsors · See all 3 cosponsors
Last activity — Placed on the Union Calendar, Calendar No. 101.
Cleared committee, waiting for its first floor vote
A committee approved it and it is on the calendar of the chamber it started in.
This is further than most bills get, and still no promise of a vote: the calendar is a queue, and the majority leadership decides what is called. A bill can sit here until the Congress ends.
Its path through Congress
- Introduced
- On Calendar
What this bill would do
The "Bank Failure Prevention Act of 2025" establishes new rules for how the government processes acquisition and merger applications for various financial institutions. It mandates that regulatory agencies notify applicants within 30 days regarding whether their application record is complete or if more information is needed. This notice period can be extended by an additional 30 days for complex applications. If an applicant responds to a request for more information, the record is considered complete unless the agency identifies material deficiencies within 30 days. Most importantly, agencies must grant or deny applications within 90 days of the initial submission, regardless of whether the record is complete. If the agency fails to make a decision within that 90-day window, the application is automatically deemed granted.
Yes
- Scored +5
Would business owners be better off under this?
Financial institution owners benefit significantly from predictable and accelerated merger timelines.
- Scored +2
Does this make what the government does easier for the public to see?
The bill forces agencies to provide clear, timely communications regarding application completeness.
- Scored +1
Is this likely to grow the economy?
By streamlining bank merger timelines, it potentially facilitates easier consolidation and capital movement.
The opposite
- Scored -3
Does this give people more protection from unfair business practices?
The automatic approval of applications due to agency inaction may reduce the scrutiny required to protect consumers from risky bank mergers.
- Scored -2
Does this give the federal government more power?
It limits the discretionary oversight power of federal regulatory agencies by mandating automatic approvals.
- Scored -2
Does this protect the right to fair treatment by the courts?
The 'deemed granted' provision may circumvent the traditional due process of administrative review.
Who it would affect, and how
Potential Positive Impacts for People
-
Expedited Approval Process: The bill requires agencies to grant or deny applications within 90 days of the initial submission, which creates a faster timeline for financial institutions (Section 2(a)(C)(i), 2(b)(8)(A), and 2(c)(15)(A)).
-
Automatic Approval as a Backstop: If a regulatory agency fails to act on an application within the 90-day deadline, the application is automatically considered granted (Section 2(a)(C)(ii), 2(b)(8)(B), and 2(c)(15)(B)).
-
Standardized Communication: The bill requires agencies to notify applicants within 30 days whether their application record is complete or what is missing, providing clearer guidance to the applicants (Section 2(a)(B)(i), 2(b)(7)(A), and 2(c)(14)(A)).
-
Limiting Regulatory Scope for Completeness: When determining if a record is complete, agencies may only use information provided directly by the applicant, preventing them from basing these determinations on third-party reports or views (Section 2(a)(B)(iv), 2(b)(7)(D), and 2(c)(14)(D)).
Potential Negative Impacts for People
-
Reduced Regulatory Review Time: The deadline for a determination is set at 90 days from the initial submission, regardless of whether the record is complete (Section 2(a)(C)(i), 2(b)(8)(A), and 2(c)(15)(A)).
-
Pressure on Agency Decision-Making: Because applications are "deemed granted" if no decision is made within the 90-day window, agencies face a strict deadline to grant or deny requests (Section 2(a)(C)(ii), 2(b)(8)(B), and 2(c)(15)(B)).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Tap or hover a score for the reason it gave.
- Demographic And Interest Groups
- Would business owners be better off under this? — Financial institution owners benefit significantly from predictable and accelerated merger timelines.
- Economy And Finance
- Is this likely to grow the economy? — By streamlining bank merger timelines, it potentially facilitates easier consolidation and capital movement. Does this give people more protection from unfair business practices? — The automatic approval of applications due to agency inaction may reduce the scrutiny required to protect consumers from risky bank mergers.
- Governance And Ideology
- Does this make what the government does easier for the public to see? — The bill forces agencies to provide clear, timely communications regarding application completeness. Does this protect the right to fair treatment by the courts? — The 'deemed granted' provision may circumvent the traditional due process of administrative review. Does this give the federal government more power? — It limits the discretionary oversight power of federal regulatory agencies by mandating automatic approvals.
- 6/4/2025
- Reported (Amended) by the Committee on Financial Services. H. Rept. 119-132.
- Placed on the Union Calendar, Calendar No. 101.
- 5/21/2025
- Committee Consideration and Mark-up Session Held
- Ordered to be Reported (Amended) by the Yeas and Nays: 29 - 21.
- 5/19/2025
- 1 Cosponsor added.
- 5/8/2025
- 1 Cosponsor added.
- 3/6/2025
- Referred to the House Committee on Financial Services.
- 1 Cosponsor added.
- Introduced in House
One bill Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.
Scott FitzgeraldRepublican · Wisconsin
Daniel MeuserRepublican · Pennsylvania
Pete SessionsRepublican · Texas