Supervisory Modifications for Appropriate Risk-Based Testing Act of 2025
Floor Speech
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Mr. TIMMONS. Mr. Speaker, I rise in support of my bill, H.R. 4437, the Supervisory Modifications for Appropriate Risk-based Testing Act, also known as the SMART Act. I am proud to partner with Representative Foster on this bipartisan legislation to provide targeted, risk-based regulatory relief for well-managed and well-capitalized financial institutions with assets under $6 billion.
The SMART Act modernizes the examination process for qualifying institutions by allowing full scope onsite examinations every other cycle, alternating with more limited reviews focused on key risk areas. The bill also allows certain examinations, including safety and soundness, consumer compliance, and cybersecurity reviews to be conducted concurrently, reducing the burden of multiple overlapping examinations.
This is a practical, commonsense approach that improves regulatory efficiency while preserving strong oversight and consumer protections. The SMART Act is built on a principle familiar in other regulated industries, including the restaurant sector, where institutions with a strong track record and demonstrated compliance benefit from a more streamlined oversight process. This legislation applies that same principle to financial supervision by recognizing that not all institutions present the same level of risk, and our regulatory framework should reflect that reality.
At the same time, regulators would retain full authority to conduct additional examinations whenever necessary. Institutions with recent enforcement actions or major changes in control would not qualify for this streamlined process. Smaller financial institutions are essential to local economies, helping finance small businesses, first homes, and community development projects across the country. This bill gives them greater capacity to serve their customers and communities while maintaining the strong safeguards that consumers expect and deserve.
Mr. Speaker, I urge my colleagues on both sides of the aisle to support this bipartisan legislation that promotes efficiency and smarter regulation.
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