[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9331 Reported in House (RH)]
<DOC>
Union Calendar No. 692
119th CONGRESS
2d Session
H. R. 9331
[Report No. 119-792]
To amend the Expedited Funds Availability Act to provide exceptions in
the case of fraudulent checks or wire transfers, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 18, 2026
Mrs. Kim introduced the following bill; which was referred to the
Committee on Financial Services
September 1, 2026
Additional sponsors: Mr. Lawler, Mr. Vicente Gonzalez of Texas, and Ms.
Garcia of Texas
September 1, 2026
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed
[Strike out all after the enacting clause and insert the part printed
in italic]
[For text of introduced bill, see copy of bill as introduced on June
18, 2026]
_______________________________________________________________________
A BILL
To amend the Expedited Funds Availability Act to provide exceptions in
the case of fraudulent checks or wire transfers, 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 ``Strengthening Transaction Oversight
and Preventing Payments Fraud Act of 2026'' or the ``STOP Payments
Fraud Act of 2026''.
SEC. 2. PARITY OF AVAILABILITY FOR CERTAIN CHECKS.
(a) In General.--Section 603 of the Expedited Funds Availability
Act (12 U.S.C. 4002) is amended--
(1) in subsection (d)--
(A) by striking ``shall'' and inserting ``may'';
and
(B) by striking ``to as short a time as possible
and equal''; and
(2) by adding at the end the following:
``(g) Parity of Availability for Certain Checks During Times of
Material Fraud Losses.--
``(1) Determination.--
``(A) Before the date that is six months from the
date of enactment of the Strengthening Transaction
Oversight and Preventing Payments Fraud Act of 2026,
the Board, jointly with the Director of the Bureau of
Consumer Financial Protection, shall determine, with
respect to each class of checks described in paragraph
(5), whether the provisions of paragraph (3) should
apply to that class of checks.
``(B) After the date that is six months from the
date of enactment of the Strengthening Transaction
Oversight and Preventing Payments Fraud Act of 2026,
the Board, jointly with the Director of the Bureau of
Consumer Financial Protection, may determine, with
respect to a class of checks described in paragraph
(5), that the provisions of paragraph (3) should apply
to that class of checks.
``(2) When making a determination under paragraph (1), the
Board and the Director of the Bureau of Consumer Financial
Protection shall consider--
``(A) whether the Treasury of the United States or
depository institutions, as applicable, are
experiencing material losses from fraud related to that
class of checks; and
``(B) the impact that a determination under
paragraph (1) would have on persons sending or
receiving checks of such class of checks.
``(3) If the Board, jointly with the Director of the Bureau
of Consumer Financial Protection, makes an affirmative
determination with respect to a class of checks under paragraph
(1), then--
``(A) notwithstanding subsection (a), funds
deposited in an account at a depository institution by
checks of such class shall be available to the same
extent as funds shall be available when deposited by
check drawn on a local originating depository
institution under subsection (b)(1); and
``(B) the Board, jointly with the Director of the
Bureau of Consumer Financial Protection, no later than
60 days after the date of the determination, shall
submit a report to the Committee on Banking, Housing,
and Urban Affairs of the Senate and the Committee on
Financial Services of the House of Representatives
explaining the basis for such affirmative
determination.
``(4) In respect of each determination under paragraph (1),
the provisions of paragraph (3) are effective for a time to be
determined by the Board, jointly with the Director of the
Bureau of Consumer Financial Protection. Such period may be no
longer than one year.
``(5) The classes of checks described in this paragraph are
the following:
``(A) The class of checks described in subsection
(a)(2)(A).
``(B) The class of checks described in subsection
(a)(2)(F).''.
SEC. 3. EXCEPTION TO FUNDS AVAILABILITY REQUIREMENTS IN THE CASE OF
FRAUD.
(a) In General.--Section 604(c) of the Expedited Funds Availability
Act (12 U.S.C. 4003(c)) is amended--
(1) in paragraph (1)--
(A) in the heading of the paragraph, by striking
``In general'' and inserting ``Collectability''; and
(B) by inserting after ``subsections (a)(2), (b),
(c), and (e) of section 603'' the following: ``and
paragraphs (1) and (3) of subsection (a) of this
section'';
(2) by redesignating paragraphs (2) through (4) as
paragraphs (3) through (5), respectively;
(3) by inserting after paragraph (1) the following:
``(2) Fraud.--
``(A) Regulations.--In accordance with regulations
which the Board, jointly with the Director of the
Bureau of Consumer Financial Protection, shall
prescribe, subsections (a)(2), (b), (c), and (e) of
section 603 and paragraphs (1) and (3) of subsection
(a) of this section shall not apply with respect to any
check deposited in an account at a depository
institution if the receiving depository institution has
reasonable suspicion to believe that the check is
false, unauthorized, or otherwise involves fraud. For
purposes of the preceding sentence, reasonable
suspicion to believe that a check is false,
unauthorized, or otherwise involves fraud requires the
existence of indicators that would lead a reasonable
person to suspect that the check involves fraud. Such
reasons shall be included in the notice required under
subsection (f).
``(B) Delayed availability.--The regulations issued
pursuant to this paragraph shall prescribe an initial
hold (time period of delayed funds availability), not
to exceed 10 days, an extended hold (time period of
delayed funds availability), not to exceed 45 days, to
allow the receiving depository institution to determine
if it has reasonable suspicion under subparagraph (A).
The regulations may prescribe different initial and
extended hold timelines based on the dollar amount of
the funds in question and other relevant criteria. The
regulations may also include conditions a receiving
depository institution must satisfy with respect to any
hold or delay of funds availability pursuant to this
paragraph.
``(C) Additional notice.--The regulations issued
pursuant to this paragraph may provide for additional
notifications to a payor, a receiving depository
institution, and a depositor beyond what is otherwise
required pursuant to subsection (f) to keep relevant
persons informed of the status of a hold.
``(D) Rule of application.--A receiving depository
institution that has reasonable suspicion to believe
that a check is false, unauthorized, or otherwise
involves fraud, as described in subparagraph (A), may
also have reasonable cause to believe that such check
is uncollectible from the originating depository
institution, as described in paragraph (1).''; and
(4) in paragraph (4), as so redesignated, by striking
``paragraph (1)'' and inserting ``paragraph (1) or (2)''.
SEC. 4. EXCEPTION TO FUNDS AVAILABILITY REQUIREMENTS IN THE CASE OF
CERTAIN ACCOUNTS AND FRAUDULENT WIRE TRANSFERS.
(a) In General.--Section 604 of the Expedited Funds Availability
Act (12 U.S.C. 4003) is amended by adding at the end the following:
``(g) Application of Certain Exceptions in Circumstances With
Greater Fraud Risk.--With respect to an account established at a
depository institution, and without regard to whether the account was
established by a new depositor, upon the occurrence of circumstances
identified by rule by the Board, jointly with the Director of the
Bureau of Consumer Financial Protection, as associated with greater
fraud risk, the provisions of paragraphs (1) through (3) of subsection
(a) shall apply with respect to any deposit in such account for a
period of time determined by rule by the Board, jointly with the
Director of the Bureau of Consumer Financial Protection, but not to
exceed 60 days for each such occurrence.
``(h) Reasonable Suspicion Exception for Wire Transfers.--
``(1) In general.--In accordance with regulations which the
Board, jointly with the Director of the Bureau of Consumer
Financial Protection, shall prescribe, section 603(a)(1)(B) and
subsection (a)(1)(B) of this section shall not apply with
respect to funds received by a depository institution by wire
transfer if the receiving depository institution has reasonable
suspicion to believe that the wire transfer is false,
unauthorized, or otherwise involves fraud. For purposes of the
preceding sentence, reasonable suspicion to believe that a wire
transfer is false, unauthorized, or otherwise involves fraud
requires the existence of indicators that would lead a
reasonable person to suspect that the wire transfer involves
fraud. Such reasons shall be included in the notice required
under subsection (f).
``(2) Delayed availability.--The regulations issued
pursuant to this subsection shall prescribe an initial hold
(time period of delayed funds availability), not to exceed 10
days, an extended hold (time period of delayed funds
availability), not to exceed 45 days, to allow the receiving
depository institution to determine if it has reasonable
suspicion under paragraph (1). The regulations may prescribe
different initial and extended hold timelines based on the
dollar amount of the funds in question and other relevant
criteria. The regulations may also include conditions a
receiving depository institution must satisfy with respect to
any hold or delay of funds availability pursuant to this
subsection.
``(3) Additional notice.--The regulations issued pursuant
to this subsection may provide for additional notifications to
a payor, a receiving depository institution, and a depositor
beyond what is otherwise required pursuant to subsection (f) to
keep relevant persons informed of the status of a hold.
``(4) Basis for determination.--No determination under this
subsection may be based on any class of wire transfers or
persons.
``(5) Overdraft fees.--If the receiving depository
institution determines that a wire transfer for credit to an
account is a wire transfer described in paragraph (1), the
receiving depository institution shall not assess any fee for
any subsequent overdraft with respect to such account, if--
``(A) the depositor was not provided with the
written notice required under subsection (f) (with
respect to such determination) at the time the wire
transfer was delayed for credit; and
``(B) the overdraft would not have occurred but for
the fact that the funds so transferred are not
available.
``(6) Compliance.--Each agency referred to in section
610(a) shall monitor compliance with the requirements of this
subsection in each regular examination of a depository
institution. For the purpose of this paragraph, each depository
institution shall retain a record of each notice provided under
subsection (f) as a result of the application of this
subsection.
``(i) Rule of Construction.--Nothing in this Act may be construed
to restrict or prohibit a depository institution involved with a
deposit by check or wire transfer from communicating to any other
depository institution also involved with the deposit that a depository
institution has invoked an exception under this section to some or all
of the requirements of section 603 with respect to the deposit.''.
(b) Time for Notice.--Section 604(f)(2)(C) of the Expedited Funds
Availability Act (12 U.S.C. 4003(f)(2)(C)) is amended by striking
``subsection (d) or (e)'' and inserting ``subsection (c)(2), (d), (e)
or (h)''.
SEC. 5. STUDY AND REPORT ON FUNDS AVAILABILITY.
(a) Study.--The Comptroller General of the United States shall
conduct a study of--
(1) State laws addressing funds availability and safeguards
to protect against fraud, including permitted hold periods for
investigating fraud concerns;
(2) the extent to which depository institutions make funds
available to consumers for local and nonlocal checks prior to
the expiration of maximum hold periods;
(3) the length of time within which depository institutions
involved with a deposit by check conduct investigations of the
nonpayment of local and nonlocal checks;
(4) the appropriateness of the time periods and amount
limits applicable under sections 603 and 604, as in effect on
June 30, 2026; and
(5) administrative and legislative reform options to
further mitigate payment fraud risk and any associated consumer
harm, including with respect to forms of payments covered and
not covered by the Expedited Funds Availability Act.
(b) Report to Congress.--Within nine months of the effective date
of rules implementing this Act, the Comptroller General of the United
States shall submit to the Committee on Banking, Housing, and Urban
Affairs of the Senate and the Committee on Financial Services of the
House of Representatives a report on the findings of the study required
under subsection (a).
SEC. 6. RULEMAKING REQUIRED AND DELAYED EFFECTIVE DATE.
(a) Rulemaking Required.--Not later than one year after the date of
enactment of this Act, the Board of Governors of the Federal Reserve
System, jointly with the Director of the Bureau of Consumer Financial
Protection, shall adopt final rules implementing the amendments made by
section 3(a)(3) and section 4.
(b) Delayed Effective Date.--The amendments made by section 3(a)(3)
and section 4 shall take effect 60 days after the rules described in
subsection (a) are adopted.
Union Calendar No. 692
119th CONGRESS
2d Session
H. R. 9331
[Report No. 119-792]
_______________________________________________________________________
A BILL
To amend the Expedited Funds Availability Act to provide exceptions in
the case of fraudulent checks or wire transfers, and for other
purposes.
_______________________________________________________________________
September 1, 2026
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed