Bills · S 875
REPORTED· 119TH CONGRESS
Senate BillS 875Government studies and investigationsCongressional oversight
FIRM Act
INTRO MAR 6· LAST ACTION MAR 18
READING
13MIN
COSPONSORS
12
READER REACTIONS0 TOTAL
NO VOTES YET · BE THE FIRST
- Reported, not passed
LEGISLATIVE PROGRESS
STEP 3 / 8Introduced
In Committee
Reported
Passed Senate
Passed House
Conference
To President
Became Law
WHAT THE BILL DOES
AI-writtenThis bill matters because it changes the rules for how banks are overseen, potentially impacting who gets financial services and under what conditions. If it becomes law, it aims to prevent federal banking agencies from using subjective public opinion or political pressure to influence banks' decisions about who they serve. Supporters argue this ensures banks focus purely on financial safety and soundness, rather than external political or social controversies. This could mean more consistent access to banking for legal businesses that might otherwise be deemed 'reputationally risky.'
However, if it doesn't pass, agencies would retain the ability to consider reputational risk, which some argue is a valid factor in a bank's overall stability and public trust. The debate centers on whether reputational risk is a legitimate measure of a bank's health or a tool that can be misused to 'weaponize' financial regulation against certain industries or groups.
KEY PROVISIONS
4AI-extractedPROVISION 01
Federal banking agencies must remove all references to 'reputational risk' from their official guidance, rules, and examination manuals.
This ensures that 'reputational risk' is officially removed from the framework used to assess banks, making the change binding across all supervisory documents.
PROVISION 02
Federal banking agencies are prohibited from making any supervisory decisions, issuing criticisms, or taking enforcement actions based on reputational risk.
This provision directly stops agencies from penalizing or influencing banks based on public opinion or potential negative publicity.
PROVISION 03
The bill defines 'reputational risk' as the potential for negative publicity or public opinion to cause harm to a financial institution, regardless of whether the underlying business practices are true or legal.
Clearly defining the term ensures that agencies understand precisely what factor they are no longer permitted to consider in their oversight.
PROVISION 04
Agencies must report to Congress within 180 days of the bill becoming law, confirming its implementation and describing any related changes to their internal policies.
This ensures accountability and verifies that federal agencies are complying with the new requirements.
SPONSORSHIP
1 + 12
R· South Carolina
YRS IN OFFICE
15
BILLS LED
66
COSPONSOR BREAKDOWNBIPARTISAN · 0%
DEM 0 REP 12 IND 0
ACTION TIMELINE
5 EVENTSMAR 18
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.
MAR 18
Placed on Senate Legislative Calendar under General Orders. Calendar No. 32.
MAR 13
Committee on Banking, Housing, and Urban Affairs. Ordered to be reported with an amendment in the nature of a substitute favorably.
MAR 6
Introduced in Senate
BILL INFO
TypeSenate Bill
NumberS 875
Congress119th
StatusReported
IntroducedMar 6, 2025
Last actionMar 18, 2025
READER REACTIONS
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REPORTED· 119TH CONGRESS · BANKING, HOUSING, AND URBAN AFFAIRS COMMITTEE · INTRODUCED MAR 6, 2025
Senate BillS 875Government studies and investigationsCongressional oversight
FIRM Act
INTRODUCED MAR 6, 2025· LAST ACTION MAR 18, 2025
PASSAGE CHANCES
—%
READING
13 min
COSPONSORS
12
COMPLEXITY
Moderate
