This bill would change the Federal Reserve Act to stop Federal Reserve banks from paying earnings on balances that depository institutions keep at Reserve banks. The text replaces a paragraph in section 19(b) of the Act with the sentence: "No Federal Reserve bank may pay earnings on balances maintained at a Federal Reserve bank by or on behalf of a depository institution." The bill was introduced in the Senate on June 18, 2025, by Senators Rand Paul and Bernie Sanders. The bill text shows referral to the Committee on Banking, Housing, and Urban Affairs; accompanying metadata lists the Committee on Homeland Security and Governmental Affairs with hearings held.
If the bill becomes law, Federal Reserve banks would not pay earnings on balances held for depository institutions. No publicly available information on which institutions or account types would be affected or how much money would be involved.
No publicly available information.
Sponsors: Rand Paul; Bernie Sanders. No publicly available information describing proponents' statements or detailed arguments in the provided materials.
No publicly available information.