Sponsors (7)
The bill increases and clarifies federal deposit insurance—giving broader, durable protection to many depositors and easing near‑term costs for community banks—at the cost of greater contingent liabilities for taxpayers, potential higher assessments passed to customers, reduced regulatory flexibility, and added compliance burdens for large institutions.
Depositors of noninterest-bearing transaction accounts (individuals, middle‑class families, low‑income households) and small businesses gain expanded and clearer federal insurance coverage for aggregated balances, reducing the risk of loss if their bank or credit union fails.
The expansion is written into statute, giving depositors, financial institutions, and taxpayers durable certainty that the additional insurance amount cannot be reduced or altered by the FDIC/NCUA without an Act of Congress.
Smaller banks and credit unions (≤ $10B assets), including many community and rural institutions, are temporarily shielded from new special assessments tied to the expanded insurance, reducing near‑term cost pressures on those institutions.
Taxpayers and the deposit insurance funds face higher contingent liabilities because insuring larger aggregated balances increases potential failure‑related costs to the FDIC/NCUA.
If the expanded insurance is financed over time via higher assessments, large banks could face increased costs that may be passed on to customers or shareholders, raising banking costs for consumers and businesses.
Statutorily preventing the FDIC/NCUA from changing the additional insurance amount without an Act of Congress reduces regulators' flexibility to respond to future risks or systemic events, which could complicate crisis management and raise systemic‑risk concerns.
Based on analysis of 2 sections of legislative text.
Adds a statutory extra FDIC insurance layer for aggregate noninterest-bearing transaction accounts and requires the FDIC to set the additional maximum within six months.
Creates a new, statutorily protected layer of FDIC insurance that covers an additional aggregate amount for noninterest-bearing transaction accounts on top of the existing standard maximum. The FDIC must issue a rule within six months to set that additional maximum, may not change it later except by Act of Congress, and small insured banks (≤ $10 billion in assets) are temporarily exempt from paying certain special FDIC assessments related to insuring these transaction accounts.
Official title: Amend the Federal Deposit Insurance Act to provide deposit insurance for noninterest-bearing transaction accounts, and for other purposes.
Introduced March 25, 2026 by William Francis Hagerty · Last progress March 25, 2026