[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4551 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 4551
To amend the Federal Deposit Insurance Act and the Federal Credit Union
Act to authorize a temporary transaction account guarantee program,
expand deposit and share insurance to cover business payment accounts,
and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 21, 2025
Ms. Waters introduced the following bill; which was referred to the
Committee on Financial Services, and in addition to the Committee on
Rules, for a period to be subsequently determined by the Speaker, in
each case for consideration of such provisions as fall within the
jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To amend the Federal Deposit Insurance Act and the Federal Credit Union
Act to authorize a temporary transaction account guarantee program,
expand deposit and share insurance to cover business payment accounts,
and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Employee Paycheck and Small Business
Protection Act''.
SEC. 2. EXPANDED INSURANCE COVERAGE FOR BUSINESS PAYMENT ACCOUNTS.
(a) Insured Depository Institutions.--
(1) In general.--Section 11(a) of the Federal Deposit
Insurance Act (12 U.S.C. 1821(a)) is amended--
(A) in paragraph (1)(B), by striking ``The net
amount'' and inserting ``Except as provided in
paragraph (6), the net amount''; and
(B) by adding at the end the following:
``(6) Expanded insurance coverage for business payment
accounts.--
``(A) Insurance required.--Notwithstanding
paragraph (1), the Corporation shall establish a
program under which the Corporation shall fully insure
the deposits that any depositor at an insured
depository institution maintains in a covered
transaction account in accordance with subparagraph
(B).
``(B) Amount.--The Corporation may only provide
insurance for deposits under subparagraph (A) in an
amount of net deposits up to $100,000,000 per depositor
per depository institution.
``(C) Exclusion from net amount of insured
deposits.--Any amount of deposits insured under this
paragraph shall not be taken into account when
computing the net amount due to such depositor under
paragraph (1)(B).
``(D) Covered transaction account defined.--In this
paragraph, the term `covered transaction account' means
a deposit or account maintained at an insured
depository institution--
``(i) by a business, non-profit,
municipality, or similar organization;
``(ii) used predominantly for transactions,
including payroll payments, vendor payments,
and any other regular payments made to support
the work or mission of the account holder; and
``(iii) that is non-interest bearing or
that pays interest materially below prevailing
market rates, as determined by the
Corporation.''.
(2) Applicability.--The amendments made by this subsection
shall apply with respect to a covered transaction account (as
defined in paragraph (6)(D) of section 11(a) of the Federal
Deposit Insurance Act, as added by this section) on the date of
the issuance of a final rule described in subsection (d).
(b) Credit Unions.--
(1) In general.--Section 207(k) of the Federal Credit Union
Act (12 U.S.C. 1787(k)) is amended--
(A) in paragraph (1)(A), by inserting ``and except
as provided in paragraph (7)'' after ``paragraph (2)'';
and
(B) by adding at the end the following:
``(7) Expanded insurance coverage for business payment
accounts.--
``(A) Insurance required.--Notwithstanding
paragraph (1), the Board shall establish a program
under which the Board shall fully insure the deposits
or shares in members accounts of an insured credit
union that are covered transaction accounts in
accordance with subparagraph (B).
``(B) Amount.--The Board may only provide insurance
under subparagraph (A) in an amount of the net deposits
or shares up to $100,000,000 per member per insured
credit union.
``(C) Exclusion from net amount of insured deposits
or shares.--Any amount of deposits or shares insured
under this paragraph shall not be taken into account
when computing the net amount due under paragraph
(1)(A).
``(D) Covered transaction account defined.--In this
paragraph, the term `covered transaction account' means
a deposit, share, or account maintained at an insured
credit union--
``(i) by a business, non-profit,
municipality, or similar organization;
``(ii) used predominantly for transactions,
including payroll payments, vendor payments,
and any other regular payments made to support
the work or mission of the account holder; and
``(iii) that is non-interest bearing or
that pays interest materially below prevailing
market rates, as determined by the Board.''.
(2) Applicability.--The amendments made by this subsection
shall apply with respect to a covered transaction account (as
defined in section 207(k)(7)(D) of the Federal Credit Union
Act, as added by this section) on the date of the issuance of a
final rule described in subsection (d).
(c) Data Collection and Analysis.--
(1) In general.--
(A) FDIC.--Not later than 90 days after the date of
the enactment of this Act, the Federal Deposit
Insurance Corporation shall begin collecting and
analyzing data from insured depository institutions to
establish requirements for the program established
under paragraph (6) of section 11(a) of the Federal
Deposit Insurance Act, as added by this Act, including
to determine the eligibility of covered transaction
accounts and the amount of deposits to be insured under
such program, as appropriate.
(B) NCUA.--Not later than 90 days after the date of
the enactment of this Act, the National Credit Union
Administration Board shall begin collecting and
analyzing data from insured credit unions to establish
requirements for the program established under
paragraph (7) of section 207(k) of the Federal Credit
Union Act, as added by this Act, including to determine
the eligibility of covered transaction accounts and the
amount of deposits or shares to be insured under such
program, as appropriate.
(2) Elements.--In establishing the eligibility of covered
transaction accounts and the amount of deposits or shares to be
insured as described in paragraph (1), the Federal Deposit
Insurance Corporation and the National Credit Union
Administration Board, respectively, shall consider the
following:
(A) The eligibility of covered transaction accounts
and the maximum insurance amount for such deposits or
shares to promote safety and soundness of insured
depository institutions and insured credit unions, as
applicable.
(B) The eligibility of covered transaction accounts
and the maximum insurance amount for such deposits or
shares to promote stability of the financial system of
the United States.
(C) The eligibility of covered transaction accounts
and the maximum insurance amount for such deposits or
shares to promote a competitive depository market
structure that, as applicable, includes--
(i) minority depository institutions (as
defined in section 308 of the Financial
Institutions Reform, Recovery, and Enforcement
Act of 1989) and minority insured credit
unions;
(ii) rural depository institutions and
rural insured credit unions;
(iii) depository institutions and credit
unions that are community development financial
institutions (as defined in section 103(5) of
the Riegle Community Development and Regulatory
Improvement Act of 1994); and
(iv) other large, small, and medium-sized
insured depository institutions and insured
credit unions.
(D) The eligibility of covered transaction accounts
and the maximum insurance amount for such deposits or
shares to ensure holders of covered transaction
accounts would be able to meet payment obligations in a
timely fashion, including payroll and vendor payment
obligations.
(E) The expected effect of assessment or premium
adjustments on insured depository institutions and
insured credit unions, as applicable.
(3) Publication.--Not later than 18 months after the date
of the enactment of this Act, the Federal Deposit Insurance
Corporation and the National Credit Union Administration Board
shall--
(A) make publicly available a report with detailed
analyses conducted under this subsection, including
aggregated data; and
(B) make available to the Committee on Financial
Services of the House of Representatives and Committee
on Banking, Housing, and Urban Affairs of the Senate
the data collected under this subsection.
(d) Rulemaking.--
(1) Proposed rulemaking.--
(A) In general.--Not later than 18 months after the
date of the enactment of this Act, the Federal Deposit
Insurance Corporation and the National Credit Union
Administration Board shall each issue a proposed rule
to carry out the requirements of this section and the
amendments made by this section.
(B) Additional requirements.--The Federal Deposit
Insurance Corporation and the National Credit Union
Administration Board shall consult with the Board of
Governors of the Federal Reserve System and the
Comptroller of the Currency before issuing a proposed
rule required under subparagraph (A).
(C) Testimony.--The Chairperson of the Federal
Deposit Insurance Corporation and the Chairman of the
National Credit Union Administration Board shall
testify before the Financial Services Committee of the
House of Representatives and Committee on Banking,
Housing, and Urban Affairs of the Senate, at a time
determined by the Chairs of those Committees that is
after the date on which the proposed rule described in
subparagraph (A) is issued.
(2) Final rulemaking.--
(A) In general.--Not later than 30 months after the
date of the enactment of this Act, the Federal Deposit
Insurance Corporation and the National Credit Union
Administration Board shall each issue a final rule to
carry out the requirements of this section and the
amendments made by this section.
(B) Joint determinations required.--Each rule
described under subparagraph (A) shall contain the
following, which shall be jointly determined by the
Federal Deposit Insurance Corporation and the National
Credit Union Administration Board:
(i) A definition of the term ``deposits''
and ``deposits or shares'' that applies to both
programs.
(ii) A maximum insurance amount for
deposits or shares held in a covered
transaction account that applies to both
programs.
(3) Failure to issue a final rule.--If the Federal Deposit
Insurance Corporation or the National Credit Union
Administration Board do not issue a final rule required under
paragraph (2) before the deadline described in that paragraph--
(A) the Chair of each agency failing to issue a
final rule shall--
(i) testify before the Committee on
Financial Services of the House of
Representatives and Committee on Banking,
Housing, and Urban Affairs of the Senate
regarding the reasons why the agency has not
yet issued a final rule; and
(ii) submit a report to such Committees
that includes--
(I) an assessment of the benefits
and challenges posed by expanding
deposit or share insurance as required,
as applicable, under the program
established under paragraph (6) of
section 11(a) of the Federal Deposit
Insurance Act (as added by this Act)
and the program established under
paragraph (7) of section 207(k) of the
Federal Credit Union Act (as added by
this Act); and
(II) any recommendations for
administrative or legislative
modifications; and
(B) the Comptroller General of the United State
shall conduct a review of the reports required under
subsection (c), along with any other relevant data, and
submit to Congress a report on--
(i) the benefits and challenges posed by--
(I) the program established under
paragraph (6) of section 11(a) of the
Federal Deposit Insurance Act, as added
by this Act; and
(II) the program established under
paragraph (7) of section 207(k) of the
Federal Credit Union Act, as added by
this Act; and
(ii) any recommendations for legislative or
regulatory actions.
(e) Extension of Deposit Insurance Fund and National Credit Union
Share Insurance Fund Restoration Plans.--A Deposit Insurance Fund
restoration plan (as defined under section 7(b)(3)(E) of the Federal
Deposit Insurance Act (12 U.S.C. 1817(b)(3)(E))) or a restoration plan
for the National Credit Union Share Insurance Fund (as described in
section 202(c)(2)(D) of the Federal Credit Union Act (12 U.S.C.
1782(c)(2)(D))) in effect on the date of the enactment of this Act
shall be extended for a period of 8 years beginning on the effective
date of a final rule issued by the applicable agency pursuant to
subsection (d).
SEC. 3. TEMPORARY TRANSACTION ACCOUNT GUARANTEE PROGRAM.
(a) Insured Depository Institutions.--Section 13 of the Federal
Deposit Insurance Act (12 U.S.C. 1823) is amended by adding at the end
the following:
``(l) Insurance of Certain Uninsured Deposits To Preserve Financial
Stability.--
``(1) Establishment of program framework.--The Corporation
shall, by rule, establish a framework for a Temporary
Transaction Account Guarantee Program (the `Program') under
which the Corporation fully insures the net amount any
depositor at an insured depository institution maintains in a
covered transaction account for a single period not to exceed
180 days.
``(2) Implementation.--The Corporation may implement the
Program only if, upon the written recommendation of the Board
of Directors (upon a vote of not less than two-thirds of the
members of the Board of Directors) and the Board of Governors
of the Federal Reserve System (upon a vote of not less than
two-thirds of the members of such Board), the Secretary of the
Treasury (in consultation with the President) determines that
the failure to implement the program would have serious adverse
effects on financial stability or economic conditions in the
United States.
``(3) Eligibility.--An insolvent insured depository
institution is not eligible to be enrolled in the Program.
``(4) Funding.--In implementing the Program, the
Corporation may--
``(A) establish assessments on insured depository
institutions that participate in the Program; and
``(B) use amounts available in the Deposit
Insurance Fund.
``(5) Extension.--The Corporation may extend the period
described in paragraph (2) for an additional 90 days if--
``(A) the Board of Directors (upon a vote of not
less than two-thirds of the members of the Board of
Directors), the Board of Governors of the Federal
Reserve System (upon a vote of not less than two-thirds
of the members of such Board), and the Secretary (in
consultation with the President) determines that the
failure to extend such program would have serious
adverse effects on financial stability or economic
conditions in the United States; and
``(B) the Secretary of the Treasury submits to
Congress a report containing data and analysis,
including data and analysis from the Board of Directors
and the Board of Governors of the Federal Reserve
System, justifying such extension.
``(6) Testimony.--Not later than 45 days after any
implementation of the Program, the Chairperson of the Board of
Directors, the Chairman of the Board of Governors of the
Federal Reserve System, and the Secretary of the Treasury shall
provide testimony to the Committee on Financial Services
Committee of the House of Representatives and the Committee on
Banking, Housing, and Urban Affairs of the Senate describing
the data, analysis, and justification for implementing the
Program.
``(7) GAO report.--Not later than 90 days after any
implementation of the Program, the Comptroller General of the
United States shall submit to Congress a report describing the
implementation of the Program.
``(8) Covered transaction account defined.--In this
subsection, the term `covered transaction account' means a
transaction account that is non-interest bearing or that pays
interest materially below prevailing market rates, as
determined by the Corporation.
``(9) Termination.--
``(A) In general.--Any implementation of the
Program shall terminate not later than 270 days after
the date of implementation unless the Board of
Directors (upon a vote of not less than two-thirds of
the members of the Board of Directors) and the Board of
Governors of the Federal Reserve System (upon a vote of
not less than two-thirds of the members of such Board)
submits to the Secretary of the Treasury a written
recommendation to not terminate the program, and--
``(i) the Secretary of the Treasury--
``(I) submits to Congress a report
containing data and analysis to justify
not terminating the Program that
includes data and analysis from the
Board of Directors and the Board of
Governors of the Federal Reserve
System; and
``(II) requests approval from
Congress to extend the Program for a
specified period of time; and
``(ii) a joint resolution of approval is
enacted to extend the Program.
``(B) Procedures for joint resolution of
approval.--The procedures provided for congressional
consideration of a joint resolution under section
1105(d) of the Dodd-Frank Wall Street Reform and
Consumer Protection Act shall apply to a joint
resolution of approval described under subparagraph
(A)(ii).''.
(b) Insured Credit Unions.--Section 207 of the Federal Credit Union
Act (12 U.S.C. 1787) is amended by adding at the end the following:
``(s) Insurance of Certain Uninsured Deposits To Preserve Financial
Stability.--
``(1) In general.--The National Credit Union Administration
Board may establish a program under which the Board fully
insures the net amount in member accounts of an insured credit
union that are covered transaction accounts for a single period
not to exceed 180 days if, upon the written recommendation of
such Board (upon a vote of not less than two-thirds of the
members of such Board) and the Board of Governors of the
Federal Reserve System (upon a vote of not less than two-thirds
of the members of such Board), the Secretary of the Treasury
(in consultation with the President) determines that the
failure to establish such program would have serious adverse
effects on financial stability or economic conditions in the
United States.
``(2) Eligibility.--An insolvent insured credit union is
not eligible to be enrolled in a program established under this
subsection.
``(3) Funding.--To carry out a program under this
subsection, the Board may--
``(A) establish assessments on insured credit
unions that participate in such a program; and
``(B) use amounts available in the Fund.
``(4) Extension.--The National Credit Union Administration
Board may extend the period described in paragraph (1) for an
additional 90 days if--
``(A) the National Credit Union Administration
Board (upon a vote of not less than two-thirds of the
members of such Board), the Board of Governors of the
Federal Reserve System (upon a vote of not less than
two-thirds of the members of such Board), and the
Secretary of the Treasury (in consultation with the
President) determines that the failure to extend such
program would have serious adverse effects on financial
stability or economic conditions in the United States;
and
``(B) the Secretary of the Treasury submits to
Congress a report containing data and analysis,
including data and analysis from the Board of Directors
and the Board of Governors of the Federal Reserve
System, justifying such extension.
``(5) Testimony.--Not later than 45 days after the
establishment of a program under this subsection, the Chairman,
the Chairman of the Board of Governors of the Federal Reserve
System, and the Secretary of the Treasury shall provide
testimony to the Committee on Financial Services of the House
of Representatives and the Committee on Banking, Housing, and
Urban Affairs of the Senate describing the data, analysis, and
justification for establishing the program under this
subsection.
``(6) GAO report.--Not later than 90 days after the
establishment of a program under this subsection, the
Comptroller General of the United States shall submit to
Congress a report describing the establishment of such program.
``(7) Covered transaction account defined.--In this
subsection, the term `covered transaction account' means a
transaction account that is non-interest bearing or that pays
interest materially below prevailing market rates, as
determined by the National Credit Union Administration Board.
``(8) Termination.--
``(A) In general.--A program established under this
subsection shall terminate not later than 270 days
after the date of establishment unless the Board (upon
a vote of not less than two-thirds of the members of
such Board) and the Board of Governors of the Federal
Reserve System (upon a vote of not less than two-thirds
of the members of such Board) submits to the Secretary
of the Treasury a written recommendation to not
terminate the program, and--
``(i) the Secretary of the Treasury--
``(I) submits to Congress a report
containing data and analysis to justify
not terminating the program that
includes data and analysis from the
Board and the Board of Governors of the
Federal Reserve System; and
``(II) requests approval from
Congress to extend the program for a
specified period of time; and
``(ii) a joint resolution of approval is
enacted to extend the program.
``(B) Procedures for joint resolution of
approval.--The procedures provided for congressional
consideration of a joint resolution under section
1105(d) of the Dodd-Frank Wall Street Reform and
Consumer Protection Act shall apply to a joint
resolution of approval described under subparagraph
(A)(ii).''.
(c) Modification to Expedited Procedures.--Section 1105(d) of the
Dodd-Frank Wall Street Reform and Consumer Protection Act (12 U.S.C.
5612(d)) is amended--
(1) by redesignating paragraph (4) as paragraph (5); and
(2) by inserting after paragraph (3) the following:
``(4) Consideration in the house of representatives.--Upon
receipt of a request under subsection (c), a joint resolution
introduced in the House of Representatives in connection with
such request shall be privileged.''.
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