Paul Merski: Why the ICBA Capital Summit is Coming at a Key Moment

Community bankers from across the country are slated to meet in the nation’s capital in May for the four-day ICBA Capital Summit, which this year comes at a critical time. Held from May 4–7 at the Westin Washington, D.C. Downtown, the ICBA Capital Summit features in-person meetings with congressional offices on key issues, empowering community bankers to ensure their voices are heard on Capitol Hill.

With ICBA’s congressional agenda focused on addressing numerous outstanding policy priorities in a condensed timeframe due to this year’s midterm elections, community banker participation in the Capital Summit will be crucial. Here’s a look at some of the key issues that will be driving community bank advocacy at this year’s event.

Finalizing community bank regulatory relief

Community bank regulatory relief remains a driving force for ICBA advocacy, and this top-level priority received a significant boost with the introduction earlier this year of the ICBA-supported Main Street Capital Access Act (H.R. 6955).

The legislation from House Financial Services Committee chairman French Hill (R-Ark.) and Financial Institutions Subcommittee chairman Andy Barr (R-Ky.) packages numerous pro-community bank bills the committee advanced last year as part of its “Make Community Banking Great Again” initiative.

For instance, the legislation includes provisions to tailor regulations to the lower risk profile of community banks, ease excessive capital requirements, support the formation of new community banks, ensure fair reviews of agency examinations, offer relief at the holding company level, promote bank-fintech partnerships and more.

ICBA has worked closely with the committee every step of the way, with ICBA president and CEO Rebeca Romero Rainey last year testifying at the committee’s first hearing of the 119th Congress and joining committee leaders for a kickoff event for H.R. 6955 in January. Continuing to advocate passage of this important legislation at the ICBA Capital Summit will be key to getting it over the finish line.

Agricultural Lending and Rural Policy Priorities for Community Banks

Policies that affect the agriculture sector and rural communities remain critical following last year’s passage of the ICBA-advocated ACRE Act tax exclusion for agricultural lending. The ACRE Act policy allows lenders to exclude from gross income 25% of the interest they receive from loans secured by rural or agricultural real property. ICBA and its affiliated state associations, with the support of congressional offices, are pressing Treasury and the IRS to ensure rules that implement this exclusion apply to as many agricultural loans as possible.

Meanwhile, ICBA continues to urge the passage of a new farm bill that will provide ample funding for commodity programs and crop insurance, support quicker loan approvals on USDA guaranteed loans, streamline paperwork requirements and reject proposals to expand the Farm Credit System’s tax and regulatory advantages.

Deposit Insurance Reform and Financial Stability Priorities

Following last year’s government shutdown and ongoing budget battles in Washington, ICBA remains focused on ensuring pro-Main Street programs continue to receive the funding they need. That includes preserving federal resources for the Small Business Administration, Community Development Financial Institutions Fund and the National Flood Insurance Program.

Meanwhile, ICBA continues its work to advance policies that promote industry stability, such as deposit insurance reforms that support consumer and investor confidence while offsetting the too-big-to-fail guarantee. While 2025 offered an important starting point to the deposit insurance debate, ICBA-advocated bills to raise thresholds for holding custodial deposits (H.R. 5317) and reciprocal deposits (H.R. 3234) have passed the House Financial Services Committee by wide margins and are key provisions of the Main Street Capital Access Act.

Parity with credit unions also continues to gain momentum amid a surge in acquisitions of community banks. ICBA last year issued an analysis showing how these acquisitions are harming local communities, including in the high-poverty areas that credit unions are subsidized to serve. This data, and ICBA’s call for policymakers to end the federal tax exemption for credit unions with $1 billion or more in assets, has contributed to a wave of negative credit union attention in the news media and on Capitol Hill—offering a critical opening for long-sought reforms.

How Community Bankers Can Engage in ICBA Advocacy

This year’s Capital Summit will be particularly important given the number of issues Congress is working to advance before the midterm elections take center stage among lawmakers. 

The Capital Summit features keynote speakers, “Lobbying 101” training, legislative briefings, breakout sessions and, of course, meetings with lawmakers and congressional staff. It is the preeminent lobbying event for community bankers nationwide, and it is open to community bankers at every stage of their career.

For those who can’t make the trip to Washington, ICBA’s Be Heard online grassroots platform allows community banking advocates to stay engaged with their members of Congress on key issues throughout the year. To keep track of the latest news and updates on what’s happening in Washington, community bankers can subscribe to ICBA’s NewsWatch Today newsletter or check in on the online ICBA Newsroom. 

With so many pressing community banking issues front and center in the current Congress, now is the time to get to Washington, meet with lawmakers, and ensure our industry’s voice is heard.

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