[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 2999 Introduced in Senate (IS)]
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119th CONGRESS
1st Session
S. 2999
To amend the Federal Deposit Insurance Act to provide deposit insurance
for noninterest-bearing transaction accounts, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
October 9, 2025
Mr. Hagerty (for himself and Ms. Alsobrooks) introduced the following
bill; which was read twice and referred to the Committee on Banking,
Housing, and Urban Affairs
_______________________________________________________________________
A BILL
To amend the Federal Deposit Insurance Act to provide deposit insurance
for noninterest-bearing transaction 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 ``Main Street Depositor Protection
Act''.
SEC. 2. TRANSACTION ACCOUNT INSURANCE.
(a) Depository Institutions.--
(1) In general.--Section 11(a)(1) of the Federal Deposit
Insurance Act (12 U.S.C. 1821(a)(1)) is amended by striking
subparagraph (B) and inserting the following:
``(B) Net amount of insured deposit.--
``(i) In general.--The net amount due to
any depositor at an insured depository
institution shall not exceed the sum of--
``(I) the standard maximum deposit
insurance amount as determined in
accordance with subparagraphs (C), (D),
(E), and (F) and paragraph (3); and
``(II) the net amount under clause
(ii).
``(ii) Insurance for noninterest-bearing
transaction accounts.--
``(I) In general.--Except as
provided in subclause (III), the
Corporation shall insure the net
amount, in an amount that is not more
than $10,000,000, that any depositor
maintains, in the aggregate, in 1 or
more noninterest-bearing transaction
accounts at an insured depository
institution.
``(II) Aggregation.--For the
purpose of determining the net amount
due to any depositor under subclause
(I), the Corporation shall aggregate
the amounts of all deposits in insured
depository institutions that are
subsidiaries of a single depository
institution holding company.
``(III) Exclusion.--
``(aa) Definition.--In this
subclause, the term `foreign
bank' does not include any bank
organized under the laws of any
territory of the United States,
Puerto Rico, Guam, American
Samoa, or the Virgin Islands,
the deposits of which are
insured by the Corporation
pursuant to this Act.
``(bb) Exclusion.--The
Corporation may not insure
under subclause (I) amounts
maintained at--
``(AA) any insured
depository institution
that is a subsidiary of
a bank holding company
that is identified as a
global systemically
important BHC under
section 217.402 of
title 12, Code of
Federal Regulations (or
any successor
regulation); or
``(BB) any insured
branch of a foreign
bank.''.
(2) Technical and conforming amendment.--Section 3(m) of
the Federal Deposit Insurance Act (12 U.S.C. 1813(m)) is
amended--
(A) in paragraph (1), by inserting ``, including
deposits in a noninterest-bearing transaction
account,'' after ``deposits''; and
(B) by adding at the end the following:
``(5) Noninterest-bearing transaction account.--The term
`noninterest-bearing transaction account' means a deposit or
account maintained at an insured depository institution--
``(A) with respect to which interest is neither
accrued nor paid;
``(B) on which the depositor or account holder is
permitted to make withdrawals by negotiable or
transferable instrument, payment orders of withdrawal,
telephone or other electronic media transfers, or other
similar items for the purpose of making payments or
transfers to third parties or others; and
``(C) on which the insured depository institution
does not reserve the right to require advance notice of
an intended withdrawal.''.
(3) Assessments.--During the transition period under
subsection (c), no insured depository institution with total
assets of $10,000,000,000 or less shall be required to pay--
(A) any special assessment under section 7(b)(5) or
13(c)(4)(G) of the Federal Deposit Insurance Act (12
U.S.C. 1817(b)(5), 1823(c)(4)(G)) as a condition to
insurance on a noninterest-bearing transaction account,
as defined in paragraph (5) of section 3(m) of the
Federal Deposit Insurance Act (12 U.S.C. 1813(m)), as
added by paragraph (2) of this subsection; or
(B) any increase in assessments under section
7(b)(2) of the Federal Deposit Insurance Act (12 U.S.C.
1817(b)(2)) solely to offset any impact on the reserve
ratio arising out of the extension of insurance to
noninterest-bearing transaction accounts in excess of
the standard maximum deposit insurance amount as
determined in accordance with subparagraphs (C), (D),
(E), and (F) of paragraph (1) and paragraph (3) of
section 11(a) of that Act (12 U.S.C. 1821(a)).
(b) Credit Unions.--
(1) In general.--Section 207(k)(1)(A) of the Federal Credit
Union Act (12 U.S.C. 1787(k)(1)(A)) is amended--
(A) by striking ``Subject to the provisions of
paragraph (2), the net amount'' and inserting the
following:
``(i) Net amount of insurance payable.--
Subject to clause (ii) and the provisions of
paragraph (2), the net amount''; and
(B) by adding at the end the following:
``(ii) Insurance for noninterest-bearing
transaction accounts.--
``(I) In general.--Notwithstanding
clause (i), the Board shall insure the
net amount, in an amount that is not
more than $10,000,000, that any member,
or any person with funds lawfully held
in a member account, maintains, in the
aggregate, in 1 or more noninterest-
bearing transaction accounts at an
insured credit union.
``(II) Exclusion.--The amount
described in subclause (I) shall not be
taken into account when computing the
net amount due to a member, or to any
person with funds lawfully held in a
member account, described in that
subclause under clause (i).''.
(2) Technical and conforming amendments.--Section 101 of
the Federal Credit Union Act (12 U.S.C. 1752) is amended--
(A) in paragraph (5), by inserting ``such terms
mean a noninterest-bearing transaction account,'' after
``Act,'';
(B) in paragraph (8), by striking ``and'' at the
end;
(C) in paragraph (9), by striking the period at the
end and inserting ``; and''; and
(D) by adding at the end the following:
``(10) The term `noninterest-bearing transaction account'
means an account of a member, or nonmember that is eligible to
maintain an insured account, maintained at an insured credit
union--
``(A) with respect to which interest is neither
accrued nor paid;
``(B) on which the member or account holder is
permitted to make withdrawals by negotiable or
transferable instrument, payment orders of withdrawal,
telephone or other electronic media transfers, or other
similar items for the purpose of making payments or
transfers to third parties or others; and
``(C) on which the insured credit union does not
reserve the right to require advance notice of an
intended withdrawal.''.
(c) Transition Period.--
(1) Depository institutions.--
(A) In general.--Notwithstanding any other
provision of law, insured deposits in noninterest-
bearing transaction accounts, as described in clause
(ii) of section 11(a)(1)(B) of the Federal Deposit
Insurance Act (12 U.S.C. 1821(a)(1)(B)), as added by
subsection (a)(1) of this section, shall be included in
the determination of the value of the estimated insured
deposits described in sections 3(y)(3) and 7(b)(3)(B)
of that Act (12 U.S.C. 1813(y)(3), 1817(b)(3)(B)) in
accordance with the plan required under subparagraph
(B).
(B) Plan.--Not later than 1 year after the date of
enactment of this Act, the Federal Deposit Insurance
Corporation shall publish in the Federal Register a
plan for gradually increasing, during the period ending
on the date that is 10 years after the date of
enactment of this Act, the portion of insured deposits
described in subparagraph (A) in the determination
described in that subparagraph, reaching 100 percent at
the end of the period.
(2) Credit unions.--
(A) In general.--Notwithstanding any other
provision of law, insured shares in noninterest-bearing
transaction accounts, as described in clause (ii) of
section 207(k)(1)(A) of the Federal Credit Union Act
(12 U.S.C. 1787(k)(1)(A)), as added by subsection
(b)(1) of this section, shall be included in the
determination of the value of the aggregate amount of
the insured shares, as defined in section 202(h) of
that Act (12 U.S.C. 1782(h)), in accordance with the
plan required under subparagraph (B).
(B) Plan.--Not later than 1 year after the date of
enactment of this Act, the National Credit Union
Administration Board shall publish in the Federal
Register a plan for gradually increasing, during the
period ending on the date that is 10 years after the
date of enactment of this Act, the portion of insured
shares described in subparagraph (A) in the
determination described in that subparagraph, reaching
100 percent at the end of the period.
(C) Regulations.--The National Credit Union
Administration Board may promulgate regulations to
ensure that the National Credit Union Share Insurance
Fund remains well-capitalized.
(d) Regulations.--The Federal Deposit Insurance Corporation and the
National Credit Union Administration Board may promulgate regulations
carrying out the amendments made by this section, including prohibiting
insured depository institutions, as defined in section 3 of the Federal
Deposit Insurance Act (12 U.S.C. 1813), insured credit unions, as
defined in section 101 of the Federal Credit Union Act (12 U.S.C.
1752), and third parties, as applicable, from evading the limitation of
insurance established under those amendments to only--
(1) noninterest-bearing transaction accounts;
(2) deposits or accounts at insured depository institutions
not excluded under clause (ii)(III) of section 11(a)(1)(B) of
the Federal Deposit Insurance Act (12 U.S.C. 1821(a)(1)(B)), as
added by subsection (a) of this section; and
(3) shares, deposits, or accounts at insured credit unions.
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