Sponsor
Garland H. Barr
Representative · R-KY
Representative · R-KY
The bill temporarily protects depositors and stabilizes confidence in the banking system during stress events, at the trade-off of potential costs to taxpayers and financial institutions, added uncertainty about long-term coverage, and concentrated executive discretion.
Depositors (individuals and businesses) would have full insurance on non-interest transaction accounts during the covered stress period, reducing the risk that savers and small firms lose insured deposits.
The measure would increase public confidence in the banking system during crises, helping limit runs and stabilize broader economic and financial conditions.
The bill requires transparency and congressional oversight after program termination (Treasury testimony within 30 days and GAO review within 90 days), improving accountability for emergency actions.
Taxpayers and the Deposit Insurance Fund could face losses if the program covers large or prolonged uninsured balances, increasing the risk of costs borne by the public.
Banks and credit unions may incur special assessments or holding-company costs to replenish insurance funds, which could lead to higher fees, reduced lending, or weaker bank balance sheets.
The temporary (six-month plus one three-month extension) nature of the protection may create uncertainty for depositors and institutions about long-term coverage, complicating planning and market judgments.
Based on analysis of 1 section of legislative text.
Authorizes the FDIC, after a Treasury/President banking‑stress determination, to temporarily fully insure non‑interest transaction accounts nationwide with caps, time limits, and required congressional reporting.
Creates a new, temporary Emergency Transaction Account Guarantee (Emergency TAG) authority that lets the FDIC fully insure non‑interest‑bearing transaction accounts at all insured banks, but only after the Treasury Secretary (in consultation with the President) determines a "banking stress event" exists and notifies the FDIC and Federal Reserve. The program is time‑limited (automatic 6‑month end with one 3‑month extension allowed), subject to caps on Deposit Insurance Fund (DIF) costs set by the Treasury, and requires reporting and testimony to Congress before and after use.
Official title: To authorize the Secretary of the Treasury to direct the Federal Deposit Insurance Corporation and the National Credit Union Administration to establish emergency transaction account guarantee programs, and for other purposes.
Introduced March 25, 2026 by Garland H. Barr · Last progress March 25, 2026