Congressional Legislation · bill 119hr3234 · built from our database

Both sides have signed this (Bill Ranking)

Keeping Deposits Local Act

H.R. 3234 · 119th Congress (2025-2026)

H.R. 3234119TH CONGRESSINTRODUCED 05/07/2025REP. EMMERR-MN · SPONSORLeft: no (Sponsor Ranking)Lean left: no (Sponsor Ranking)Center: no (Sponsor Ranking)Lean right: DW-NOMINATE +0.47 (Sponsor Ranking)Right: no (Sponsor Ranking)LEAN RIGHT(SPONSOR RANKING)FINANCE AND FINANCIAL SECTOR

12 members · Left 2 · Center 1 · Right 9 (Bill Ranking)

SponsorRep. Emmer, Tom (R-MN) (Introduced 05/07/2025)
Sponsor Voting RecordLean right · DW-NOMINATE +0.47 · measured from every roll-call vote this member has cast (voteview.com) (Sponsor Ranking)
Support
LLLCLRR

support across the spectrum: 12 members signed on (Bill Ranking) this bill: sponsor + current cosponsors, each once

CommitteesSenate - Banking, Housing, and Urban Affairs Committee; House - Financial Services Committee; House - Financial Services Committee; House - Financial Services Committee
Latest Action05/21/2026 Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
Roll Call Votes1
Sourceview on congress.gov →
IntroducedPassed HousePassed SenateResolving DifferencesTo PresidentBecame Law

Summary (1)

Introduced in House (05/07/2025)

This bill increases the amount insured depository institutions may accept as reciprocal deposits. (Reciprocal deposits are used by institutions to increase the availability of deposit insurance by splitting large deposits using a reciprocal network of institutions.) The bill creates a tiered system so that the allowable amount is based on the institution's total liabilities.

Additionally, the bill changes certain qualifications insured depository institutions may be required to have to accept reciprocal deposits. Under current law, institutions may qualify by having a composite rating of outstanding or good, among other requirements. The bill allows institutions with a 1, 2, or 3 rating under the CAMELS scale to qualify. (The Uniform Financial Institutions Rating System uses the characteristics of capital adequacy, asset quality, management, earnings, liquidity, and sensitivity to market risk (i.e., CAMELS ratings) to rate the health of financial institutions, with a 1 indicating the highest rating and least degree of supervisory concern and a 5 indicating the lowest rating and highest degree of supervisory concern.)

Text (4)

Engrossed in House (EH)

119 HR 3234 EH: Keeping Deposits Local Act U.S. House of Representatives text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. I 119th CONGRESS2d Session H. R. 3234

IN THE HOUSE OF REPRESENTATIVES AN ACT To amend the Federal Deposit Insurance Act to modify the amount of reciprocal deposits of an insured depository institution that are not considered to be funds obtained by or through a deposit broker, and for other purposes.

1.Short titleThis Act may be cited as the Keeping Deposits Local Act.

2.Amount of reciprocal deposits that are not considered to be funds obtained by or through a deposit brokerSection 29(i) of the Federal Deposit Insurance Act (12 U.S.C. 1831f(i)) is amended by striking paragraph (1) and inserting the following: (1)In generalThe sum of the following amounts of reciprocal deposits of an agent institution shall not be considered to be funds obtained, directly or indirectly, by or through a deposit broker: (A)An amount equal to 50 percent of the portion of the total liabilities of the agent institution that is less than or equal to $1,000,000,000. (B)An amount equal to 40 percent of the portion, if any, of the total liabilities of the agent institution that is greater than $1,000,000,000, but less than or equal to $10,000,000,000. (C)An amount equal to 30 percent of the portion, if any, of the total liabilities of the agent institution that is greater than $10,000,000,000, but less than or equal to $250,000,000,000..

3.Definition of Agent InstitutionSection 29(i)(2)(A)(i) of the Federal Deposit Insurance Act (12 U.S.C. 1831f(i)(2)(A)(i)) is amended by striking subclause (I) and inserting the following: (I)when most recently examined under section 10(d) was assigned a CAMELS rating of 1, 2, or 3 under the Uniform Financial Institutions Rating System (or an equivalent rating under a comparable rating system); and.

4.Reciprocal deposits study (a)In generalThe Federal Deposit Insurance Corporation, in consultation with the Board of Governors of the Federal Reserve System, shall carry out a study on reciprocal deposits. (b)ContentsThe study required under subsection (a) shall include— (1)an analysis of how reciprocal deposits have performed since 2018, which shall include— (A)the use of quantitative and qualitative data; (B)a breakdown of the usage of reciprocal deposits by size of insured depository institution; (C)the usage of reciprocal deposits during periods of stress; and (D)an analysis, to the extent practicable, of end-user depositors, such as municipalities, businesses, and non-profit organizations, that drive demand for reciprocal products; (2)an analysis, to the extent practicable, of how reciprocal deposits compare to other deposit arrangements; and (3)an analysis of the benefits and potential risks of reciprocal deposits. (c)ReportNot later than 6 months after the date of enactment of this Act, the Federal Deposit Insurance Corporation shall issue a report to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate containing all findings and determinations made in carrying out the report required under subsection (a).

5.Discretionary Surplus Fund (a)In generalThe dollar amount specified under section 7(a)(3)(A) of the Federal Reserve Act (12 U.S.C. 289(a)(3)(A)) is reduced by $28,000,000. (b)Effective dateThe amendment made by subsection (a) shall take effect on September 1, 2036. Passed the House of Representatives May 20, 2026.Kevin F. McCumber,Clerk.

Introduced in House (IH)

119 HR 3234 IH: To amend the Federal Deposit Insurance Act to modify the amount of reciprocal deposits of an insured depository institution that are not considered to be funds obtained by or through a deposit broker, and for other purposes. U.S. House of Representatives 2025-05-07 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. I119th CONGRESS1st SessionH. R. 3234IN THE HOUSE OF REPRESENTATIVESMay 7, 2025Mr. Emmer (for himself, Mrs. Beatty, Mr. Meuser, and Ms. Moore of Wisconsin) introduced the following bill; which was referred to the Committee on Financial ServicesA BILLTo amend the Federal Deposit Insurance Act to modify the amount of reciprocal deposits of an insured depository institution that are not considered to be funds obtained by or through a deposit broker, and for other purposes. 1. Amount of reciprocal deposits that are not considered to be funds obtained by or through a deposit broker Section 29(i) of the Federal Deposit Insurance Act (12 U.S.C. 1831f(i)) is amended by striking paragraph (1) and inserting the following: (1) In general The sum of the following amounts of reciprocal deposits of an agent institution shall not be considered to be funds obtained, directly or indirectly, by or through a deposit broker: (A) An amount equal to 50 percent of the portion of the total liabilities of the agent institution that is less than or equal to $1,000,000,000. (B) An amount equal to 40 percent of the portion, if any, of the total liabilities of the agent institution that is greater than $1,000,000,000, but less than or equal to $10,000,000,000. (C) An amount equal to 30 percent of the portion, if any, of the total liabilities of the agent institution that is greater than $10,000,000,000, but less than or equal to $250,000,000,000. (D) An amount equal to 20 percent of the portion, if any, of the total liabilities of the agent institution that is greater than $250,000,000,000, but less than or equal to $1,000,000,000,000. (E) An amount equal to 2 percent of the portion, if any, of the total liabilities of the agent institution that is greater than $1,000,000,000,000. .

2.Definition of Agent InstitutionSection 29(i)(2)(A)(i) of the Federal Deposit Insurance Act (12 U.S.C. 1831f(i)(2)(A)(i)) is amended by striking subclause (I) and inserting the following: (I)when most recently examined under section 10(d) was assigned a CAMELS rating of 1, 2, or 3; and.

Referred in Senate (RFS)

119 HR 3234 : Keeping Deposits Local Act U.S. House of Representatives 2026-05-21 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. IIB119th CONGRESS2d SessionH. R. 3234IN THE SENATE OF THE UNITED STATESMay 21, 2026 Received; read twice and referred to the Committee on Banking, Housing, and Urban AffairsAN ACTTo amend the Federal Deposit Insurance Act to modify the amount of reciprocal deposits of an insured depository institution that are not considered to be funds obtained by or through a deposit broker, and for other purposes.1.Short titleThis Act may be cited as the Keeping Deposits Local Act.2.Amount of reciprocal deposits that are not considered to be funds obtained by or through a deposit brokerSection 29(i) of the Federal Deposit Insurance Act (12 U.S.C. 1831f(i)) is amended by striking paragraph (1) and inserting the following:(1)In generalThe sum of the following amounts of reciprocal deposits of an agent institution shall not be considered to be funds obtained, directly or indirectly, by or through a deposit broker:(A)An amount equal to 50 percent of the portion of the total liabilities of the agent institution that is less than or equal to $1,000,000,000.(B)An amount equal to 40 percent of the portion, if any, of the total liabilities of the agent institution that is greater than $1,000,000,000, but less than or equal to $10,000,000,000.(C)An amount equal to 30 percent of the portion, if any, of the total liabilities of the agent institution that is greater than $10,000,000,000, but less than or equal to $250,000,000,000..3.Definition of Agent InstitutionSection 29(i)(2)(A)(i) of the Federal Deposit Insurance Act (12 U.S.C. 1831f(i)(2)(A)(i)) is amended by striking subclause (I) and inserting the following:(I)when most recently examined under section 10(d) was assigned a CAMELS rating of 1, 2, or 3 under the Uniform Financial Institutions Rating System (or an equivalent rating under a comparable rating system); and.4.Reciprocal deposits study(a)In generalThe Federal Deposit Insurance Corporation, in consultation with the Board of Governors of the Federal Reserve System, shall carry out a study on reciprocal deposits.(b)ContentsThe study required under subsection (a) shall include—(1)an analysis of how reciprocal deposits have performed since 2018, which shall include—(A)the use of quantitative and qualitative data;(B)a breakdown of the usage of reciprocal deposits by size of insured depository institution;(C)the usage of reciprocal deposits during periods of stress; and(D)an analysis, to the extent practicable, of end-user depositors, such as municipalities, businesses, and non-profit organizations, that drive demand for reciprocal products;(2)an analysis, to the extent practicable, of how reciprocal deposits compare to other deposit arrangements; and(3)an analysis of the benefits and potential risks of reciprocal deposits.(c)ReportNot later than 6 months after the date of enactment of this Act, the Federal Deposit Insurance Corporation shall issue a report to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate containing all findings and determinations made in carrying out the report required under subsection (a).5.Discretionary Surplus Fund(a)In generalThe dollar amount specified under section 7(a)(3)(A) of the Federal Reserve Act (12 U.S.C. 289(a)(3)(A)) is reduced by $28,000,000.(b)Effective dateThe amendment made by subsection (a) shall take effect on September 1, 2036.Passed the House of Representatives May 20, 2026.Kevin F. McCumber,Clerk.

Reported in House (RH)

119 HR 3234 RH: Keeping Deposits Local Act U.S. House of Representatives 2025-11-04 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. IBUnion Calendar No. 314119th CONGRESS1st SessionH. R. 3234[Report No. 119–362]IN THE HOUSE OF REPRESENTATIVESMay 7, 2025Mr. Emmer (for himself, Mrs. Beatty, Mr. Meuser, and Ms. Moore of Wisconsin) introduced the following bill; which was referred to the Committee on Financial ServicesNovember 4, 2025Additional sponsors: Mr. Barr, Mr. Flood, Mr. Williams of Texas, Mr. Ezell, Mr. Sessions, Mr. Golden of Maine, Mr. Bergman, and Mr. Rogers of AlabamaNovember 4, 2025Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printedStrike out all after the enacting clause and insert the part printed in italicFor text of introduced bill, see copy of bill as introduced on May 7, 2025A BILLTo amend the Federal Deposit Insurance Act to modify the amount of reciprocal deposits of an insured depository institution that are not considered to be funds obtained by or through a deposit broker, and for other purposes.1.Short titleThis Act may be cited as the Keeping Deposits Local Act.2.Amount of reciprocal deposits that are not considered to be funds obtained by or through a deposit brokerSection 29(i) of the Federal Deposit Insurance Act (12 U.S.C. 1831f(i)) is amended by striking paragraph (1) and inserting the following:(1)In generalThe sum of the following amounts of reciprocal deposits of an agent institution shall not be considered to be funds obtained, directly or indirectly, by or through a deposit broker:(A)An amount equal to 50 percent of the portion of the total liabilities of the agent institution that is less than or equal to $1,000,000,000.(B)An amount equal to 40 percent of the portion, if any, of the total liabilities of the agent institution that is greater than $1,000,000,000, but less than or equal to $10,000,000,000.(C)An amount equal to 30 percent of the portion, if any, of the total liabilities of the agent institution that is greater than $10,000,000,000, but less than or equal to $250,000,000,000..3.Definition of Agent InstitutionSection 29(i)(2)(A)(i) of the Federal Deposit Insurance Act (12 U.S.C. 1831f(i)(2)(A)(i)) is amended by striking subclause (I) and inserting the following:(I)when most recently examined under section 10(d) was assigned a CAMELS rating of 1, 2, or 3 under the Uniform Financial Institutions Rating System (or an equivalent rating under a comparable rating system); and.4.Reciprocal deposits study(a)In generalThe Federal Deposit Insurance Corporation, in consultation with the Board of Governors of the Federal Reserve System, shall carry out a study on reciprocal deposits.(b)ContentsThe study required under subsection (a) shall include—(1)an analysis of how reciprocal deposits have performed since 2018, which shall include—(A)the use of quantitative and qualitative data;(B)a breakdown of the usage of reciprocal deposits by size of insured depository institution;(C)the usage of reciprocal deposits during periods of stress; and(D)an analysis, to the extent practicable, of end-user depositors, such as municipalities, businesses, and non-profit organizations, that drive demand for reciprocal products;(2)an analysis, to the extent practicable, of how reciprocal deposits compare to other deposit arrangements; and(3)an analysis of the benefits and potential risks of reciprocal deposits.(c)ReportNot later than 6 months after the date of enactment of this Act, the Federal Deposit Insurance Corporation shall issue a report to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate containing all findings and determinations made in carrying out the report required under subsection (a).November 4, 2025Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed

The bill's own words, from our database (synced from the GPO BILLS XML); paragraph breaks added at the bill's section boundaries, nothing else changed.

All Actions (17)

DateChamberAll Actions
05/07/2025Library of CongressIntroduced in House
05/07/2025Library of CongressIntroduced in House
05/07/2025House floor actionsReferred to the House Committee on Financial Services.
09/16/2025House committee actionsCommittee Consideration and Mark-up Session Held
09/16/2025House committee actionsOrdered to be Reported (Amended) by the Yeas and Nays: 51 - 0.
11/04/2025Library of CongressReported (Amended) by the Committee on Financial Services. H. Rept. 119-362.
11/04/2025House floor actionsReported (Amended) by the Committee on Financial Services. H. Rept. 119-362.
11/04/2025House floor actionsPlaced on the Union Calendar, Calendar No. 314.
05/19/2026House floor actionsMr. Hill (AR) moved to suspend the rules and pass the bill, as amended.
05/19/2026House floor actionsConsidered under suspension of the rules. (consideration: CR H3582-3584; text: CR H3582)
05/19/2026House floor actionsDEBATE - The House proceeded with forty minutes of debate on H.R. 3234.
05/19/2026House floor actionsAt the conclusion of debate, the Yeas and Nays were demanded and ordered. Pursuant to the provisions of clause 8, rule XX, the Chair announced that further proceedings on the motion would be postponed.
05/20/2026House floor actionsConsidered as unfinished business. (consideration: CR H3644-3645)
05/20/2026Library of CongressPassed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by the Yeas and Nays: (2/3 required): 405 - 0 (Roll no. 177).
05/20/2026House floor actionsOn motion to suspend the rules and pass the bill, as amended Agreed to by the Yeas and Nays: (2/3 required): 405 - 0 (Roll no. 177).
05/20/2026House floor actionsMotion to reconsider laid on the table Agreed to without objection.
05/21/2026SenateReceived in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Titles (6)

Title TypeTitle
Display TitleKeeping Deposits Local Act
Short Titles from RFS (Referred to Senate) bill textKeeping Deposits Local Act
Short Title(s) as Passed HouseKeeping Deposits Local Act
Official Titles from EH (Engrossed in House) bill textTo amend the Federal Deposit Insurance Act to modify the amount of reciprocal deposits of an insured depository institution that are not considered to be funds obtained by or through a deposit broker, and for other purposes.
Short Title(s) as Reported to HouseKeeping Deposits Local Act
Official Title as IntroducedTo amend the Federal Deposit Insurance Act to modify the amount of reciprocal deposits of an insured depository institution that are not considered to be funds obtained by or through a deposit broker, and for other purposes.

Amendments (0)

There are no amendments to this bill.

Cosponsors (11)

* = Original cosponsor

Committees (4)

CommitteeActivity
Senate - Banking, Housing, and Urban Affairs Committee05/21/2026 Referred To
House - Financial Services Committee11/04/2025 Reported By
House - Financial Services Committee09/16/2025 Markup By
House - Financial Services Committee05/07/2025 Referred To

Related Bills (1)

Subjects (2)

Policy Area: Finance and Financial Sector

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