119-s2999

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 2999 Introduced in Senate

    (IS) ]

<DOC>

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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