House Rules Committee backs CRA to disapprove OCC bank‑merger review rule

The House Committee on Rules voted to report a closed rule allowing floor consideration of S.J. Res. 13, a Congressional Review Act measure disapproving the Office of the Comptroller of the Currency's final rule governing bank‑merger reviews.

Why it matters: Supporters said overturning the OCC rule would ease a growing regulatory burden on small and mid‑sized banks and preserve opportunities for community‑level mergers; critics said the rule improves transparency and scrutiny that protect competition and financial stability.

Representative Flood, appearing for the Committee on Financial Services, urged support for S.J. Res. 13, saying the OCC rule "makes it significantly harder for banks to merge" and "would make mergers more costly and complicated" for community and regional banks. Flood told the committee that mergers help banks "expand, reach more customers, diversify services, and reduce costs" and argued the OCC rule unduly shifts the burden of proof onto applicant banks.

Representative Casten, appearing for Ranking Member Waters, urged the committee not to advance S.J. Res. 13. Casten said the United States has "a problem" with regulators rubber‑stamping mergers and that the Biden‑era OCC rule added transparency and safeguards, including removing an automatic approval provision that eased sales by small banks to much larger institutions. Casten noted that the acting comptroller had already issued an interim final rule rescinding the 2024 OCC rule, effective May 15, but said congressional disapproval would be important to bar future similar rulemaking without legislative action.

Members debated both policy and process. Ranking Member McGovern and other Democrats criticized the majority for prioritizing disapproval resolutions while preparing to consider a large budget reconciliation bill during an overnight session. Supporters of S.J. Res. 13, including several Republican members, argued the resolution restores certainty for banks and reduces regulatory barriers to growth.

Committee action: On a party‑line motion from Mr. Langworthy, the committee reported the closed rule that permits floor consideration of S.J. Res. 13 and S.J. Res. 31. The committee adopted the motion to report; a recorded vote later showed the motion passed with seven yeas and three nays. An amendment by Representative McGovern to strike a provision (section 3) from the motion failed by recorded vote.

Background and details: Witnesses and members referenced multiple effects of the OCC rule and its rescission. Supporters said the rule eliminated expedited review procedures for mergers between smaller, well‑capitalized banks and shifted burdens to applicants. Opponents said the rule clarified how the OCC would evaluate statutory factors (financial stability, managerial resources, community needs) and applied more scrutiny to very large institutions (above $50,000,000,000 in assets). Members cited the long‑term decline in community banks — figures cited during testimony included a 46% decline since 2003 (about 3,600 banks) — as part of the policy debate.

What the committee did not decide: The committee only voted to report the closed rule for floor consideration; it did not itself adopt or reject S.J. Res. 13. The OCC had already issued an interim final rule rescinding the 2024 rule, and witnesses acknowledged that passage of the CRA while the administration has rescinded the rule changes what future rulemaking options would be available to the agency but would not immediately reinstate the prior rule.

The committee recessed after reporting the measure; members said further floor scheduling would determine next steps.