Summary#
This bill would change federal deposit and credit union insurance rules to protect business transaction accounts and create a temporary guarantee program. It directs the FDIC and the NCUA to set up programs that can fully insure covered transaction accounts. For deposits at banks, the bill would allow insurance up to $100,000,000 per depositor per depository institution for accounts that are used mainly for transactions (like payroll and vendor payments) and that are non‑interest bearing or pay interest well below market rates. A similar $100,000,000 limit would apply for members at insured credit unions. The agencies must collect data within 90 days and issue proposed rules within 18 months and final rules within 30 months. The bill also allows a Temporary Transaction Account Guarantee Program that can fully insure covered transaction accounts for up to 180 days in a crisis, with a possible 90‑day extension if approved by the agencies and the Treasury. Insolvent institutions cannot be enrolled. The bill requires agency reports, testimony to congressional committees, GAO reviews, and extends certain restoration plans for 8 years once final rules take effect. It also changes expedited congressional procedures related to approval of program extensions.
What it means for you#
- Businesses, non‑profits, and local governments that keep transaction accounts used for payroll or vendor payments could have those accounts eligible for much higher federal insurance coverage (up to $100 million per depositor per institution), if the agencies adopt the rules described in the bill.
- In a severe financial stress event, the FDIC or NCUA could temporarily guarantee covered transaction accounts for up to 180 days to help preserve financial stability.
- Banks and credit unions that participate may face assessments (fees) and other requirements set by the FDIC or NCUA.
- Regulators must collect data, write rules, and report to Congress before and after implementing the programs.
Expenses#
- The bill allows use of the Deposit Insurance Fund and the National Credit Union Share Insurance Fund as well as assessments on participating institutions to carry out the programs.
- No publicly available information on total expected costs or fiscal estimates is included in the bill text.
Proponents' View#
- The bill’s text says the programs aim to protect accounts used for payroll and regular vendor payments and to promote safety and soundness of banks and credit unions.
- The agencies are directed to consider how eligibility and insurance limits would promote financial stability, allow holders to meet payment obligations on time, and support a competitive market that includes minority, rural, and community development institutions.
- The bill builds in data collection, agency rulemaking, congressional testimony, and GAO reporting to inform decisions.
Opponents' View#
No publicly available information.