Sponsors (4)
The bill strengthens banks' ability to pause suspicious deposits and wires and adds transparency and examiner oversight to reduce fraud losses, but it increases the risk of longer, uneven holds that can delay access to funds and impose costs or reputational harms on everyday depositors—especially low‑income households.
People suspected of being targeted by fraud (and the broader depositor population) are less likely to suffer losses because banks can delay availability of checks and wires when they reasonably suspect fraud, preventing unauthorized or reversed credits.
Receiving banks can more quickly withhold funds on checks they reasonably suspect are fraudulent, reducing banks' losses and the chance that those losses are passed on to customers through higher fees or reduced services.
Banks must explain reasons for suspicion in written notices, retain records, and federal examiners will monitor compliance, improving transparency, auditability, and oversight of holds or exceptions.
Many depositors—especially low-income and middle-class households—could face up to 60-day holds that delay access to funds needed for bills and living expenses.
A broad 'reasonable suspicion' standard risks inconsistent or incorrect application, creating wrongful holds on legitimate deposits, disputes, and erosion of depositor rights.
Different institutions may implement availability and fraud-exception policies unevenly (including allowing longer holds on certain checks), increasing uncertainty and unequal access to funds across customers.
Based on analysis of 4 sections of legislative text.
Allows banks and regulators to delay expedited funds availability for checks and wires when they reasonably suspect fraud, adds new fraud exceptions, and permits short-term new-account style holds tied to fraud risk.
Official title: To amend the Expedited Funds Availability Act to provide exceptions in the case of fraudulent checks or wire transfers, and for other purposes.
Introduced June 18, 2026 by Young Kim · Last progress June 18, 2026
Makes it easier for banks and regulators to delay or limit quick access to deposited funds when they reasonably suspect checks or incoming wires involve fraud. It adds a fraud-based exception to existing funds-availability rules, lets regulators apply short-term new-account style holds when fraud risk is identified, and creates a regulation-based exception for next-business-day wire availability with notice and supervision requirements. The changes revise the Expedited Funds Availability Act to remove two check types from automatic next-business-day treatment, define "reasonable suspicion" standards, authorize the Federal Reserve Board and CFPB to write rules applying shorter availability periods when fraud risk is present, and add procedural protections and supervisory monitoring for delays to wire or check availability.