WASHINGTON – The U.S. House of Representatives today passed Sen. John Kennedy’s (R-La.) joint resolution of disapproval under Congressional Review Act (CRA) procedures to block an Office of Comptroller of the Currency (OCC) rule that delays the bank merger approval process by adding more red tape that could lead to consumer uncertainty. It now moves to the president’s desk for signing.

“When the Biden administration decided to tinker with bank merger rules for no good reason, they threw a gut punch to small community banks just trying to offer their customers a good service. I’m grateful to the U.S. House of Representatives for doing the right thing, and I look forward to President Trump signing my resolution to undo this cumbersome regulation,” said Kennedy.

Rep. Andy Barr (R-Ky.), chairman of the Financial Institutions Subcommittee on the House Financial Services Committee, introduced the companion resolution in the House of Representatives.

“Bank mergers create competition and efficiency in the banking system. By eliminating this rule, we will remove unnecessary guardrails on the bank merger process that make smaller and medium-sized banks less competitive. This is another win for President Trump, who is making our economy stronger by cutting government red-tape and unleashing the free market,” said Barr.

The Biden administration’s rule, which went into effect on Jan. 1, 2025, amended the Bank Merger Act of 1960 to make it harder for the OCC to approve healthy bank mergers quickly. Kennedy’s resolution would reverse the Biden administration’s misguided rule so that banks can stay in business and serve hardworking Americans.

Background:

• Historically, the OCC assumed that a potential merger passed muster if the agency took no action on a merger application within 15 days. The burden of showing that a merger would harm business and consumers fell on the OCC and bank regulators.

• The Biden administration’s rule shifted the burden of proof to individual banks, making it harder for banks—particularly community banks—to fulfill their obligations by making smart, strategic mergers. 

• In Feb. 2025, Kennedy introduced his resolution to undo the Biden administration’s rule.

• On May 8, 2025, the Senate passed Kennedy’s resolution of disapproval. Sens. Bill Hagerty (R-Tenn.), Thom Tillis (R-N.C.), Tim Scott (R-S.C.), Steve Daines (R-Mont.) and Bernie Moreno (R-Ohio) were cosponsors.

The American Bankers Association (ABA) supports Kennedy’s resolution.

“We applaud today’s House passage of the Congressional Review Act resolution nullifying the OCC’s flawed bank merger rule, and we thank Rep. Andy Barr for leading this effort. This action, along with the companion resolution led by Sen. John Kennedy and passed by the Senate, will provide regulators with the opportunity to reenvision the framework governing bank mergers so that it more effectively promotes competition while allowing banks to better serve their customers. We look forward to President Trump signing this important resolution into law,” said Rob Nichols, President and CEO of the ABA.

Text of the resolution is available here.