H.R. 3234

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3234 Referred in Senate (RFS)]

<DOC>
119th CONGRESS
2d Session
H. R. 3234

_______________________________________________________________________

IN THE SENATE OF THE UNITED STATES

May 21, 2026

Received; read twice and referred to the Committee on Banking, 
Housing, and Urban Affairs

_______________________________________________________________________

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.

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 ``Keeping Deposits Local Act''.

SEC. 2. 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.''.

SEC. 3. DEFINITION OF AGENT INSTITUTION.

Section 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''.

SEC. 4. RECIPROCAL DEPOSITS STUDY.

(a) In General.--The 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) Contents.--The 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) Report.--Not 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).

SEC. 5. DISCRETIONARY SURPLUS FUND.

(a) In General.--The 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 Date.--The amendment made by subsection (a) shall 
take effect on September 1, 2036.

Passed the House of Representatives May 20, 2026.

Attest:

KEVIN F. MCCUMBER,

Clerk.