The Roundup: CFPB Funded (for now), Community Bank Relief Bill, Fed Chair Decision Nears, New EWA Guidance, OCC Clarifies Trust Bank Roles

Welcome to the PerformLine Regulatory Compliance Roundup, home of the latest news, articles, and reports from our industry, curated for you. Let’s get into it.

In this edition:  CFPB survives defunding effort, Hill pushes for small bank relief, Trump signals decision on Powell’s successor, EWA rules clarified, OCC outlines trust bank scope

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CFPB Avoids Funding Lapse With $145M Request

Acting CFPB Director Russell Vought has submitted a $145 million funding request to the Federal Reserve to keep the Consumer Financial Protection Bureau operational through March 2026. The request complies with a federal court order that rejected his earlier argument that the agency couldn’t draw funds because the Fed was operating at a loss. The court ruling comes after months of legal battles over CFPB funding and mass workforce reductions, and the case is expected to be reheard by the full U.S. Court of Appeals for the D.C. Circuit in February. The New York Times

Why It Matters: Created by Congress after the 2008 financial crisis, the CFPB holds broad authority to enforce consumer protection laws. The agency has helped return nearly $20 billion to consumers through refunds and canceled debts. With its funding and leadership under scrutiny, the bureau’s ability to continue this oversight could face new challenges.

House Bill Seeks Tailored Relief for Community Banks

Lawmakers have introduced a new bill in the U.S. House of Representatives aimed at supporting the growth of community banks. The Main Street Capital Access Act (H.R. 6955), sponsored by Rep. French Hill (R‑Ark.) and Rep. Andy Barr (R‑Ky.), is positioned as a push to “reinvigorate community banks and return common sense to Main Street.”

The bill seeks to restore regulatory balance and transparency by tailoring oversight based on a bank’s size and risk, limiting the use of reputational risk in exams, and increasing U.S. control over how domestic regulators engage with international bodies. It also aims to foster competition and improve access to capital by easing entry barriers for new banks, expanding funding options for small and mid-size institutions, and refining capital requirements to better reflect the realities of community banking. PYMNTS.com

Why it Matters: The legislation comes at a critical time, as community banks continue to play a vital role in local economies, serving nearly 1 in 4 small and medium-sized businesses. Supporters argue that aligning regulation with actual risk will help spur Main Street economic growth.  

Leadership Change Looms at Federal Reserve

President Trump confirmed he has made a decision on who he will nominate as the next chair of the Federal Reserve but has not yet revealed the choice. While Kevin Hassett remains a top contender, other names reportedly under consideration include Christopher Waller and Kevin Warsh. Trump has made it clear that his choice must support lower interest rates, fueling concerns about the Fed’s future independence. The next chair will assume the role when Jerome Powell’s term concludes in May. The New York Times

Why it Matters: The upcoming Fed chair nomination is expected to shape the direction of U.S. monetary policy during a period of economic uncertainty and rate cut discussions. As the Federal Reserve continues to balance inflation, labor market signals, and financial stability, the leadership transition could impact markets, policy expectations, and long-term central bank credibility.

CFPB Offers EWA Clarity, Big Shifts Unlikely

Industry experts say the CFPB’s recent advisory opinion on earned wage access (EWA) largely maintains the current regulatory landscape rather than reshaping it. EWA programs allow employees to access a portion of their earned wages before payday, often marketed as a low-cost alternative to payday loans.

The CFPB clarified that certain EWA models, where repayment is made through payroll deduction and the amount doesn’t exceed already earned wages, don’t count as “credit” under the Truth in Lending Act. Optional fees like tips or expedited delivery charges also aren’t treated as finance charges. However, because the opinion is nonbinding and narrowly tailored, and because state laws and court rulings still apply, the impact for providers may be limited. American Banker

Why it matters: The CFPB’s stance offers some comfort to EWA providers but leaves the door open for state-level enforcement and legal uncertainty, underscoring the need for ongoing monitoring and compliance flexibility.

OCC Moves to Codify Non‑Fiduciary Trust Bank Activities

The Office of the Comptroller of the Currency (OCC) is advancing a rule to formalize non‑fiduciary activities for national trust banks. The policy would codify long‑standing interpretive guidance that permits trust banks to offer custody and related services that fall outside the definition of fiduciary duties. This comes as the OCC conditionally approves several national trust bank charters, including some with digital‑asset affiliations, and seeks to clarify the scope of permissible activities under federal oversight. The rule would embed these capabilities in regulation, moving them beyond reliance on interpretive letters or case-by-case guidance. American Banker

Why it Matters: Formalizing these non‑fiduciary powers reduces legal ambiguity and gives trust banks and charter applicants, including fintech and digital asset firms, clearer authority to offer custody‑related services. That clarity can help drive innovation and competition, but it also raises oversight questions as activities once seen as ancillary become more central to national trust banking models.