The One Big Beautiful Bill passed the U.S. House vote today 218-214 and will now go to President Donald Trump’s desk for final approval, to the benefit of U.S. financial institutions.

FIs will benefit from consumers having more money in their pockets as a result of lower taxes, Eric Croak, president of wealth management service provider Croak Capital, told Bank Automation News. 

The bill proposes a 16% tax cut for those earning less than $50,000 and a 12% cut for those earning less than $100,000; it raises taxes 4.4% on households with incomes between $460,000 and $1.1 million, according to the Congressional website. 

The tax cuts for working families increases cash available in hand, creating stronger borrower profiles that lenders need to be prepared for. 

For example, with average $10,000 annual income bump for working families from a 15% tax drop for most wage earners, “borrowers will qualify more easily,” Croak said. “That compresses underwriting windows and intensifies competition among lenders to secure customers with suddenly healthier credit profiles.” 

Community banks can also win big with the passage of this bill, Croak said, adding that increased demand for vehicle loans and affordable housing developments aligns perfectly with what they already do well. 

“But if [community and regional banks] do not automate approval and compliance systems quickly, they will miss the surge,” Eric Croak, President, Croak Capital, said. 

Push for AI 

Fintech lenders, especially those whose business is built on AI risk models or alternative credit scoring, might snap up this opportunity fastest, Croak explained.  

The bill’s repeal of taxes on tips and overtime reshapes income reporting overnight, meaning fintechs that integrate payroll data or real-time earnings APIs will have an edge. 

“Traditional banks that lag on tech could start bleeding market share to more agile digital lenders,” Eric Croak, President, Croak Capital, said. 

The regulatory pauses on AI tech look like green lights for innovation, “but innovation that races ahead of trust is a liability, not an advantage,” David McInerney, commercial manager at data privacy service provider Syrenis, told BAN. 

“Without clear AI governance, the temptation is to move fast and worry about consent later,” McInerney said. “But in my experience, that approach backfires.” 

Consumers are already questioning how their data is collected, used and shared, he said. 

“If innovation outpaces privacy, the result isn’t growth; it’s opt-outs, complaints and brand damage,” he added. 

Future of CFPB 

The bill also redefines the funding mechanism of the Consumer Financial Protection Bureau, Mike Silver, a former CFPB regulatory attorney for over a decade who focuses on consumer finance, previously told BAN. 

CFPB funding will be reduced from 12% of the Federal Reserve’s annual earnings to 6.5%. 

“This might have a very significant impact in the short term on the operations of the bureau,” Silver said. The CFPB, under the Trump administration, is more about providing guidance rather than enforcement, which can be seen with the CFPB dropping multiple big name lawsuits against Capital One, Rocket Mortgage and Walmart, he added. 

“There has been a history of ping-pong when it comes to regulations in D.C.,” Silver said. “If a Democrat wins in [2028], we might see a reversal in a lot of CFPB regulations.” 

Despite uncertainty around the CFPB’s regulatory agenda and the fate of the 1033 rule, industry is moving forward on implementing open banking frameworks, Silver said. 

Register here for “Seamless integration: The new frontier in embedded payments,” a free Bank Automation News webinar set for Tuesday, July 22, at 11 a.m. ET.