WASHINGTON, D.C. — In a significant move for community banks across the country, President Donald Trump has signed a joint resolution authored by U.S. Sen. John Kennedy (R-La.) to overturn a Biden-era regulation that added new obstacles to the bank merger process.
The resolution, passed by both the U.S. Senate and House of Representatives under Congressional Review Act procedures, nullifies a rule issued by the Office of the Comptroller of the Currency (OCC) that Kennedy says placed unnecessary burdens on small and midsized banks seeking to merge.
“When the Biden administration imposed crippling red tape on the bank merger process, they delivered a devastating blow to small community banks nationwide, strangling their ability to serve their customers,” said Kennedy. “I’m deeply thankful to my House and Senate colleagues for passing this vital legislation and to President Trump for signing my resolution to dismantle this oppressive regulation.”
The OCC’s rule, which took effect on January 1, 2025, amended the long-standing Bank Merger Act of 1960. Under the change, the burden of proof for evaluating the potential impact of a bank merger shifted from regulators to the banks themselves—particularly affecting smaller institutions with fewer compliance resources.
Kennedy’s resolution restores the pre-2025 framework, which allowed mergers to proceed unless regulators raised objections within a 15-day window. Supporters of the resolution argue that the Biden administration’s rule discouraged competition and made it more difficult for community banks to stay competitive.
Sen. Tim Scott (R-S.C.), Chairman of the Senate Banking Committee, co-sponsored the measure along with Sens. Bill Hagerty (R-Tenn.), Thom Tillis (R-N.C.), Steve Daines (R-Mont.), and Bernie Moreno (R-Ohio).
“The Biden-era rule restricting bank mergers disproportionately harmed small and midsized banks and would have reduced access to credit and financial services,” said Scott. “I’m grateful to President Trump for signing Senator Kennedy’s resolution to overturn the rule, which will ensure the free market can decide how financial institutions can best serve their customers.”
On the House side, Rep. Andy Barr (R-Ky.), who chairs the Financial Institutions Subcommittee, introduced the companion resolution.
“By eliminating this rule, we will remove unnecessary guardrails on the bank merger process that make smaller and medium-sized banks less competitive,” said Barr. “This is another win for President Trump, who is making our economy stronger by cutting government red tape and unleashing the free market.”
The resolution passed the Senate on May 8 and cleared the House on May 20 before receiving the President’s signature.