WASHINGTON – President Donald Trump today signed Sen. John Kennedy’s (R-La.) joint resolution of disapproval under Congressional Review Act (CRA) procedures to block an Office of Comptroller (OCC) rule that hurts community banks by adding unnecessary red tape to the bank merger approval process.

“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. 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,” said Kennedy.

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.

Sens. Tim Scott (R-S.C.), Bill Hagerty (R-Tenn.), Thom Tillis (R-N.C.), Steve Daines (R-Mont.) and Bernie Moreno (R-Ohio) cosponsored the Senate resolution. 

“The Biden-era rule restricting bank mergers disproportionately harmed small and midsized banks and would have reduced access to credit and financial services. 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,”said Scott, Chairman of the Senate Banking Committee.

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

“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.

Background:

• Historically, the OCC assumed that a potential merger passed muster if the agency did not take action on a merger application within 15 days. The burden of showing that a merger would harm businesses 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 February 2025, Kennedy introduced his resolution to undo the Biden administration’s rule.

• On May 8, 2025, the Senate passed Kennedy’s resolution. 

• On May 20, 2025, the U.S. House of Representatives passed the resolution.

The full resolution is available here.