[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8087 Introduced in House (IH)]
<DOC>
119th CONGRESS
2d Session
H. R. 8087
To amend the Federal Deposit Insurance Act to provide deposit insurance
for noninterest-bearing transaction accounts, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 25, 2026
Mr. Lucas introduced the following bill; which was referred to the
Committee on Financial Services
_______________________________________________________________________
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 (IV), not later
than the end of the 6-month period
beginning on the date of enactment of
this clause, the Corporation shall
insure the net amount that any
depositor maintains, in the aggregate,
in 1 or more noninterest-bearing
transaction accounts at an insured
depository institution, in the amount
determined under subclause (II).
``(II) Insured amount.--The
Corporation shall issue a rule to
establish the maximum amount for
insurance described in subclause (I),
which shall be in an amount that is--
``(aa) not less than the
standard maximum deposit
insurance amount on the date
such rule is issued;
``(bb) not more than
$5,000,000; and
``(cc) based on
considerations of enhancing the
financial stability of the
banking system, promoting
economic growth, and providing
for the safety of the Deposit
Insurance Fund.
``(III) 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
noninterest-bearing transaction
accounts at insured depository
institutions that are subsidiaries of a
single depository institution holding
company.
``(IV) 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.
``(cc) Rule of
construction.--Nothing in this
subclause may be construed to
exclude any insured depository
institution described in
subitem (AA) from the standard
maximum deposit insurance
amount described in clause
(i)(I).
``(V) No subsequent adjustments.--
After the Corporation issues a rule
pursuant to subclause (II), the amount
of insurance provided under subclause
(I) may not subsequently be modified or
repealed except by an Act of
Congress.''.
(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 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) Insured amount.--The maximum
amount for insurance described in
subclause (I) shall be the maximum
amount determined in the rule issued by
the Federal Deposit Insurance
Corporation pursuant to section
11(a)(1)(B)(ii)(II) of the Federal
Deposit Insurance Act (12 U.S.C.
1821(a)(1)(B)(ii)(II)).
``(III) 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)(IV) 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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Main Street Depositor Protection Act
#8087 | HR Congress #119
Subjects:
Last Action: Referred to the House Committee on Financial Services. (3/25/2026)
Bill Text Source: Congress.gov
Summary and Impacts
Original Text