Sponsor
Frank D. Lucas
Representative · R-OK
Representative · R-OK
The bill expands deposit insurance and gives smaller institutions temporary relief and regulatory predictability, but it increases potential costs to the Deposit Insurance Fund, limits regulator flexibility, and may shift some risks and reduced protections onto taxpayers, institutions, or future periods.
Depositors with noninterest-bearing transaction accounts — including many small-business operating accounts and some household accounts — and credit union members with similar shares would have those balances insured above the standard FDIC/NCUA limit, reducing risk of loss if an insured institution fails.
Smaller banks and credit unions (≤ $10 billion in assets) would be temporarily shielded from new special assessment costs during the transition, easing near-term financial burden on these institutions.
The FDIC and NCUA must publish 10-year phase-in plans for counting these deposits in insured deposit calculations, providing predictability to financial institutions and markets about future assessment and reserve treatment.
Taxpayers and bank customers could face higher costs because extending insurance for these transaction accounts increases exposure of the Deposit Insurance Fund, potentially leading to higher bank assessments or taxpayer-backed support over time.
Taxpayers, regulators, and institutions would lose flexibility because the additional insurance amount is protected from FDIC modification absent an Act of Congress, constraining the agency's ability to adjust coverage in response to future risks.
Phasing inclusion of these deposits into reserve calculations over 10 years may defer necessary capital or assessment adjustments, shifting costs and concentrated risks into future periods for financial institutions and taxpayers.
Based on analysis of 2 sections of legislative text.
Establishes an additional FDIC insurance layer for aggregate noninterest-bearing transaction accounts and directs FDIC rulemaking to set the amount and aggregation rules.
Official title: To amend the Federal Deposit Insurance Act to provide deposit insurance for noninterest-bearing transaction accounts, and for other purposes.
Introduced March 25, 2026 by Frank D. Lucas · Last progress March 25, 2026
Creates a new, separate layer of federal deposit insurance that protects the aggregate balance of noninterest-bearing transaction accounts at a banking organization in addition to the existing standard maximum deposit insurance amount. The FDIC must issue a rule within six months defining the additional insured amount, will aggregate such accounts across subsidiaries of a holding company, may exclude certain account types, and the additional insurance cannot be changed by the FDIC once set except by Act of Congress. Smaller banks (under $10 billion in assets) are temporarily exempted from related special assessments tied to this expanded coverage.