Analyst Brief May 07, 2026

H.R. 3709 — Advancing the Mentor-Protégé Program for Small Financial Institutions Act, as amended

Current Status

Suspension of the Rules

Executive Summary

H.R. 3709 amends the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 to establish a Financial Agent Mentor-Protégé Program within the Department of the Treasury. The bill aims to pair large financial institutions (over $50 billion in assets) with small, minority, or rural depository institutions to build the latter's capacity to serve as federal financial agents or improve customer services. Moving to the floor under suspension of the rules, this legislation represents a bipartisan effort to diversify the pool of financial institutions contracting with the federal government and to support community banking infrastructure through public-private partnerships.

Bill Data

Primary Sponsor

Rep. Beatty, Joyce (D-OH)

Bill Number

H.R. 3709

Session

119th

Co-Sponsors

None
View on Congress.gov ↗

Arguments For

  • Economic Inclusion: Helps small, minority, and rural banks compete for lucrative federal contracts, diversifying the Treasury's financial agent pool.
  • Capacity Building: Leverages the expertise of massive financial institutions to modernize and improve the service capacity of community banks without requiring direct federal subsidies.
  • Bipartisan Appeal: Combines progressive goals (supporting minority depository institutions) with conservative goals (supporting rural banks and utilizing public-private partnerships).

Likely Supporters

Independent Community Bankers of America (ICBA)National Bankers Association (NBA)American Bankers Association (ABA)

Arguments Against

  • Regulatory Burden: Creates a new administrative program within Treasury that requires rulemaking, outreach, and reporting, marginally increasing agency workload.
  • Market Distortion Risk: Could inadvertently give participating small banks an unfair competitive advantage over non-participating peers in local markets.
  • Big Bank Influence: Critics might argue it allows mega-banks to exert undue influence over community banks under the guise of mentorship.

Likely Opponents

Minimal organized opposition expected

📋 Key Provisions

  • Directs the Treasury Secretary to establish the Financial Agent Mentor-Protégé Program.
  • Defines 'large financial institutions' as those with over $50 billion in consolidated assets.
  • Defines 'small financial institutions' as those with under $2 billion in assets, minority depository institutions, or rural depository institutions with under $10 billion in assets.
  • Requires the Treasury to hold annual outreach events to promote participation among eligible institutions.
  • Mandates an annual report to Congress detailing program participation and outreach efforts.
  • Requires the Secretary to issue guidance establishing a process to exclude non-compliant institutions from the program.
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Claim Analysis Page 2, Line 11

Establishes the Financial Agent Mentor-Protégé Program.

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"the 'Financial Agent Mentor-Protégé Program' (in"

Claim Analysis Page 4, Line 5

Defines large financial institutions as having assets greater than or equal to $50 billion.

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"greater than or equal to $50,000,000,000."

Claim Analysis Page 4, Line 23

Defines small financial institutions as having assets lesser than or equal to $2 billion.

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"lesser than or equal to $2,000,000,000;"

Claim Analysis Page 3, Line 8

Requires an annual report to Congress on program participation.

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"REPORT.—The Secretary shall report to"