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HR 5276

Community Bank LIFT Act

119th Congress Introduced by Young Kim

The Community Bank LIFT Act raises the asset cap for community banks to $15B and lowers leverage ratios, easing regulations to boost their stability and competitiveness.

Reported (Amended) by the Committee on Financial Services. H. Rept. 119-367.
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WeVote Research Nonpartisan
Bill Summary · HR 5276

Summary of HR 5276: Community Bank LIFT Act

Purpose and Intent

The Community Bank LIFT Act (HR 5276) aims to amend the Economic Growth, Regulatory Relief, and Consumer Protection Act to enhance the flexibility and transparency of the Community Bank Leverage Ratio (CBLR). Introduced on September 10, 2025, by Representative Young Kim (CA-40), the bill seeks to reduce regulatory burdens on community banks, thereby encouraging more of them to participate in the CBLR framework.

Key Provisions

  1. Adjustment of the Community Bank Leverage Ratio:

    • The bill proposes to increase the asset threshold for qualifying community banks from $10 billion to $15 billion.
    • It also lowers the required leverage ratio range from 8-10% to 6-8%.

  2. Regulatory Review and Recommendations:

    • The Board of Governors of the Federal Reserve System, the Comptroller of the Currency, and the Federal Deposit Insurance Corporation (FDIC) are mandated to conduct a review of the CBLR.
    • This review will focus on modifications to encourage more community banks to opt into the CBLR framework, particularly those with fewer assets.
    • A report detailing findings and recommendations must be submitted to Congress within 150 days of enactment.

  3. Rulemaking Timeline:

    • The federal banking agencies are required to propose rules to implement the recommended changes within 180 days of the bill's enactment and finalize them within one year.

Impact

  • Who is Affected:

    • The bill primarily impacts qualifying community banks—those with total assets under $15 billion—by providing them with a simplified capital adequacy framework.
    • It aims to relieve regulatory compliance burdens, making it easier for these banks to operate and serve their communities.

  • Potential Benefits:

    • By lowering the leverage ratio requirements and increasing the asset threshold, the bill is expected to promote greater participation in the CBLR framework, thereby enhancing the stability and competitiveness of community banks.

Legislative Status

  • The bill was reported (amended) by the Committee on Financial Services on November 4, 2025, and is currently placed on the Union Calendar for further consideration.

Conclusion

The Community Bank LIFT Act represents a significant effort to support community banks by reducing regulatory burdens and enhancing their operational flexibility. By adjusting the CBLR parameters, the bill aims to foster a more favorable environment for these institutions, ultimately benefiting the communities they serve.

Compiled from official sources — confirm details with the bill’s official record.

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