Summary#
The Tailoring and Indexing Enhanced Regulations Act of 2025, or TIER Act of 2025, would amend the Federal Reserve Act, the Bank Holding Company Act of 1956, the Financial Stability Act of 2010, and the Economic Growth, Regulatory Relief, and Consumer Protection Act. Its stated goal is to adjust certain statutory asset thresholds for past and future growth in U.S. gross domestic product (GDP). The bill is not law, according to the supplied status information.
- It raises several existing dollar thresholds, including thresholds of $100 billion to $150 billion, $250 billion to $370 billion, $50 billion to $75 billion, and $10 billion to $15 billion in specified provisions.
- It requires the Federal Reserve Board to publish increases to listed thresholds every five years, starting by April 1, 2031. The increases apply only if the GDP-based calculation is greater than 1, and the bill sets rounding rules.
- It requires the Federal Reserve Board, Comptroller of the Currency, and the Corporation to review certain thresholds set by regulation every five years and modify identified thresholds using GDP-based calculations.
- The bill adds these duties to existing agencies; it does not create a new agency or a direct public-facing program.
What it means for you#
- Banks and other financial companies: Some asset cutoffs in the named laws would rise. A cutoff is a dollar amount that can affect how a law applies. The supplied bill text does not include the parent laws, so the exact regulatory or assessment consequences for each type of company cannot be verified here.
- Federal agencies: The named agencies would have to calculate, publish, review, and—in the cases covered by the bill—modify thresholds. The Federal Reserve Board must report its calculated amounts by April 5 in adjustment years; each agency must report regulatory changes to Congress after its review.
- Individuals and taxpayers: The bill does not directly change individual taxes, benefits, or rights, or create a new fee. Any broader effects would depend on how the affected thresholds change the laws’ application to financial companies.
Money#
No publicly available information on the bill’s total cost or savings.
- The bill contains no spending appropriation or cost estimate.
- It would require agency work to calculate and publish thresholds, review regulations, make required changes, and report to Congress. The staffing and cost of that work are not stated.
What is unclear#
- The supplied material does not include the amended laws, so I could not verify how the existing thresholds currently affect assessments, regulatory requirements, or agency powers.
- The bill does not explain how each raised threshold changes the treatment of a particular company; that depends on the provisions being amended.
- The future automatic adjustment list does not expressly include every threshold raised elsewhere in the bill. For example, it does not list the Bank Holding Company Act threshold or the threshold in section 165(a)(2)(C) of the Financial Stability Act.
- The first required review of regulation-based thresholds is due by June 30, 2026. That date has passed, and the bill does not say what happens to the deadline if the bill becomes law later.
- The bill does not set a specific effective date or detailed process for changes made after reviews of thresholds set by regulation.
Case for#
- The bill appears intended to keep certain dollar cutoffs from staying fixed as the economy grows.
- A possible argument for using GDP is that it gives agencies a common measure for adjusting thresholds over time, rather than leaving every listed amount unchanged.
- The five-year reviews also direct agencies to consider the purpose of each threshold and the entities they regulate, and to seek uniformity where feasible.
Case against#
- The bill raises listed statutory thresholds and uses GDP growth as the basis for later increases; it does not require a separate review of each affected company’s circumstances before those changes.
- A higher cutoff may change which companies meet a legal trigger. The bill does not spell out the resulting effects for each provision, making it difficult to assess the practical reach of the changes from this text alone.
- The bill’s automatic adjustment list does not expressly cover every threshold it raises, which could leave some amounts indexed while others remain fixed.
- The agencies must do reviews and make changes, but the bill gives them judgment over what is appropriate and sets no detailed process for affected companies or the public to take part.