# 119-s-875: FIRM Act

119-s-875, FIRM Act, is a 119th Congress bill sponsored by Sen. Scott, Tim [R-SC] (R-SC); status in_committee; PRIA reads it as touching household money (as of 2026-04-21).

- Canonical: https://policyrisk.com/legislation/119-s-875
- As of: 2026-04-21
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 119-s-875
- Congress: 119
- Title: FIRM Act
- Status: in_committee
- Introduced: 2025-03-06
- Sponsor: Sen. Scott, Tim [R-SC] (R-SC)
- Cosponsors: 12
- Policy area: Finance and Financial Sector
- Touches household money: yes
- Last recorded action: 2026-04-21

## Summary

**Bans federal banking agencies from using "reputational risk" in supervising banks and credit unions.** The bill would also require agencies to tailor rules to institution risk profiles, cut some reporting for community banks, and deliver several reports to Congress on implementation and modernization. - Depository institutions. Agencies could not base exams, supervisory ratings, enforcement, guidance, or data collection on reputational risk, removing that factor from supervisory decisions. - Community banks. Banks eligible for the Community Bank Leverage Ratio would be allowed to file a short-form Call Report for the first and third report of each year, reducing filing burden. - Federal banking agencies. Agencies would have to remove references to reputational risk from guidance and manuals, tailor regulatory actions to institution risk and disclose that tailoring in rule notices, perform a seven-year look-back on recent rules with revisions due within three years, and report to Congress including a 180-day implementation confirmation and an 18-month modernization study. - Consumers and certain industries. By eliminating reputational risk as a supervisory tool, the bill aims to limit subjective or politically driven pressures that agencies have cited in the past as restricting access to banking services. *Would shift supervision toward traditional, material safety-and-soundness risks and impose new tailoring and reporting requirements on agencies.*

## Cosponsors (12)

- Sen. Britt, Katie Boyd [R-AL] (R-AL), 2025-03-06T00:00:00.000Z
- Sen. Moreno, Bernie [R-OH] (R-OH), 2025-03-06T00:00:00.000Z
- Sen. Banks, Jim [R-IN] (R-IN), 2025-03-06T00:00:00.000Z
- Sen. Crapo, Mike [R-ID] (R-ID), 2025-03-06T00:00:00.000Z
- Sen. Rounds, Mike [R-SD] (R-SD), 2025-03-06T00:00:00.000Z
- Sen. Tillis, Thomas [R-NC] (R-NC), 2025-03-06T00:00:00.000Z
- Sen. Kennedy, John [R-LA] (R-LA), 2025-03-06T00:00:00.000Z
- Sen. Hagerty, Bill [R-TN] (R-TN), 2025-03-06T00:00:00.000Z
- Sen. Lummis, Cynthia M. [R-WY] (R-WY), 2025-03-06T00:00:00.000Z
- Sen. Ricketts, Pete [R-NE] (R-NE), 2025-03-06T00:00:00.000Z
- Sen. Cramer, Kevin [R-ND] (R-ND), 2025-03-06T00:00:00.000Z
- Sen. McCormick, David [R-PA] (R-PA), 2025-03-06T00:00:00.000Z

## Provisions PRIA read

- No supervision based on reputational risk: benefit, high. If enacted, federal banking agencies would be barred from using "reputational risk" in exams, rules, ratings, data collection, or enforcement. Agencies would have to remove references to reputational risk from guidance and manuals. Each agency would also have to report to Congress within 180 days d…
- Tailored rules for different banks: benefit, high. If enacted, the OCC, Federal Reserve, FDIC, NCUA, and CFPB would have to tailor new rules to an institution's risk profile and business model. Agencies must say in every proposed and final rule how they considered tailoring. They must review final rules tied to laws from the seven years before this…
- Less reporting for some community banks: benefit, medium. If enacted, banks that qualify for the Community Bank Leverage Ratio (CBLR) would be allowed to file a shorter Call Report. The short form would apply to the first and third report-of-condition each year. Federal banking agencies would have to write rules to put this change in place. If your commun…

## Related bills

- 119-s-587: Death Tax Repeal Act of 2025
- 119-s-186: No Taxpayer Funding for Abortion and Abortion Insurance Full Disclosure Act of 2025
- 119-s-6: Born-Alive Abortion Survivors Protection Act
- 119-s-128: SAVE Act
- 119-s-65: Constitutional Concealed Carry Reciprocity Act of 2025
- 119-s-5: Laken Riley Act

## Sources
- [119-s-875 on Congress.gov](https://www.congress.gov/bill/119th-congress/senate-bill/875)

## Related
- [119-s-587: Death Tax Repeal Act of 2025](https://policyrisk.com/legislation/119-s-587)
- [119-s-186: No Taxpayer Funding for Abortion and Abortion Insurance Full Disclosure Act of…](https://policyrisk.com/legislation/119-s-186)
- [119-s-6: Born-Alive Abortion Survivors Protection Act](https://policyrisk.com/legislation/119-s-6)
- [119-s-128: SAVE Act](https://policyrisk.com/legislation/119-s-128)
- [119-s-65: Constitutional Concealed Carry Reciprocity Act of 2025](https://policyrisk.com/legislation/119-s-65)
- [119-s-5: Laken Riley Act](https://policyrisk.com/legislation/119-s-5)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/119-s-875 (as of 2026-04-21).