119-hr4551

[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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