H.R. 1116 would require the federal banking regulators—the Federal Deposit Insurance Commission (FDIC), the Office of the Comptroller of the Currency (OCC), the National Credit Union Administration (NCUA), the Consumer Financial Protection Bureau (CFPB), and the Federal Reserve—to adapt their regulatory actions to the specific risk profiles and business models of financial institutions that are subject to regulation. That requirement would apply to any new regulatory action. The bill also would require the federal banking regulators to review and revise regulatory actions from the past seven years, including those written under the Dodd Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act).
CBO estimates that enacting the legislation would increase the deficit by $80 million over the 2018-2027 period. That amount comprises an increase in direct spending of $56 million and a reduction in revenues of $24 million. Because enacting the bill would affect direct spending and revenues, pay-as-you-go procedures apply. CBO also estimates that reviewing rules issued by the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) would cost $3 million over the 2018-2022 period; such spending would be subject to the availability of appropriated funds.
CBO estimates that enacting H.R. 1116 would not increase net direct spending or on-budget deficits by more than $2.5 billion in any of the four consecutive 10-year periods beginning in 2028.
H.R. 1116 contains no intergovernmental mandates as defined in the Unfunded Mandates Reform Act (UMRA). Additional fees imposed by the OCC, the NCUA, and the SEC increase the cost of the existing mandate on private entities that are required to pay those assessments. However, CBO estimates that the incremental cost of the mandate would fall well below the annual threshold established in UMRA for private-sector mandates ($156 million in 2017, adjusted for inflation).