[Congressional Record Volume 172, Number 106 (Wednesday, June 24, 2026)]
[Senate]
[Pages S3525-S3526]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 6396. Mr. HAGERTY (for himself, Ms. Alsobrooks, Mrs. Hyde-Smith,
Ms. Cortez Masto, and Mr. Gallego) submitted an amendment intended to
be proposed by him to the bill S. 4784, to authorize appropriations for
fiscal year 2027 for military activities of the Department of Defense,
for military construction, and for defense activities of the Department
of Energy, to prescribe military personnel strengths for such fiscal
year, and for other purposes; which was ordered to lie on the table; as
follows:
At the end of subtitle G of title X, add the following:
SEC. _____. TRANSACTION ACCOUNT INSURANCE.
(a) Depository Institutions.--
(1) In general.--Section 11(a)(1) of the Federal Deposit
Insurance Act (12 U.S.C. 1821(a)(1)) is amended by striking
subparagraph (B) and inserting the following:
``(B) Net amount of insured deposit.--
``(i) In general.--The net amount due to any depositor at
an insured depository institution shall not exceed the sum
of--
``(I) the standard maximum deposit insurance amount as
determined in accordance with subparagraphs (C), (D), (E),
and (F) and paragraph (3); and
``(II) the net amount under clause (ii).
``(ii) Insurance for noninterest-bearing transaction
accounts.--
``(I) In general.--Except as provided in subclause (IV),
not later than the end of the 6-month period beginning on the
date of enactment of this clause, the Corporation shall
insure the net amount that any depositor maintains, in the
aggregate, in 1 or more noninterest-bearing transaction
accounts at an insured depository institution, in the amount
determined under subclause (II).
``(II) Insured amount.--The Corporation and the National
Credit Union Administration shall jointly issue a final rule
to establish the maximum amount for insurance described in
subclause (I), which shall be in an amount that is--
``(aa) not less than the standard maximum deposit insurance
amount and standard maximum share insurance amount on the
date such rule is issued;
``(bb) not more than $5,000,000; and
``(cc) based on considerations of enhancing the financial
stability of the banking and credit union systems, promoting
economic growth, and providing for the safety of the Deposit
Insurance Fund and the National Credit Union Share Insurance
Fund.
``(III) Aggregation.--For the purpose of determining the
net amount due to any depositor under subclause (I), the
Corporation shall aggregate the amounts of all deposits in
noninterest-bearing transaction accounts at insured
depository institutions that are subsidiaries of a single
depository institution holding company.
``(IV) Exclusion.--
``(aa) Definition.--In this subclause, the term `foreign
bank' does not include any bank organized under the laws of
any territory of the United States, Puerto Rico, Guam,
American Samoa, or the Virgin Islands, the deposits of which
are insured by the Corporation pursuant to this Act.
[[Page S3526]]
``(bb) Exclusion.--The Corporation may not insure under
subclause (I) amounts maintained at--
``(AA) any insured depository institution that is a
subsidiary of a bank holding company that is identified as a
global systemically important BHC under section 217.402 of
title 12, Code of Federal Regulations (or any successor
regulation); or
``(BB) any insured branch of a foreign bank.
``(cc) Rule of construction.--Nothing in this subclause may
be construed to exclude any insured depository institution
described in subitem (AA) from the standard maximum deposit
insurance amount described in clause (i)(I).
``(V) No subsequent adjustments.--After the Corporation
issues a rule pursuant to subclause (II), the amount of
insurance provided under subclause (I) may not subsequently
be modified or repealed except by an Act of Congress.''.
(2) Technical and conforming amendment.--Section 3(m) of
the Federal Deposit Insurance Act (12 U.S.C. 1813(m)) is
amended--
(A) in paragraph (1), by inserting ``, including deposits
in a noninterest-bearing transaction account,'' after
``deposits''; and
(B) by adding at the end the following:
``(5) Noninterest-bearing transaction account.--The term
`noninterest-bearing transaction account' means a deposit or
account maintained at an insured depository institution--
``(A) with respect to which interest is neither accrued nor
paid;
``(B) on which the depositor or account holder is permitted
to make withdrawals by negotiable or transferable instrument,
payment orders of withdrawal, telephone or other electronic
media transfers, or other similar items for the purpose of
making payments or transfers to third parties or others; and
``(C) on which the insured depository institution does not
reserve the right to require advance notice of an intended
withdrawal.''.
(3) Assessments.--During the transition period under
subsection (c), no insured depository institution with total
assets of $10,000,000,000 or less shall be required to pay--
(A) any special assessment under section 7(b)(5) or
13(c)(4)(G) of the Federal Deposit Insurance Act (12 U.S.C.
1817(b)(5), 1823(c)(4)(G)) as a condition to insurance on a
noninterest-bearing transaction account, as defined in
paragraph (5) of section 3(m) of the Federal Deposit
Insurance Act (12 U.S.C. 1813(m)), as added by paragraph (2)
of this subsection; or
(B) any increase in assessments under section 7(b)(2) of
the Federal Deposit Insurance Act (12 U.S.C. 1817(b)(2))
solely to offset any impact on the reserve ratio arising out
of the extension of insurance to noninterest-bearing
transaction accounts in excess of the standard maximum
deposit insurance amount as determined in accordance with
subparagraphs (C), (D), (E), and (F) of paragraph (1) and
paragraph (3) of section 11(a) of that Act (12 U.S.C.
1821(a)).
(b) Credit Unions.--
(1) In general.--Section 207(k)(1)(A) of the Federal Credit
Union Act (12 U.S.C. 1787(k)(1)(A)) is amended--
(A) by striking ``Subject to the provisions of paragraph
(2), the net amount'' and inserting the following:
``(i) Net amount of insurance payable.--Subject to clause
(ii) and the provisions of paragraph (2), the net amount'';
and
(B) by adding at the end the following:
``(ii) Insurance for noninterest-bearing transaction
accounts.--
``(I) In general.--Notwithstanding clause (i), not later
than the end of the 6-month period beginning on the date of
enactment of this clause, the Board shall insure the net
amount that any member, or any person with funds lawfully
held in a member account, maintains, in the aggregate, in 1
or more noninterest-bearing transaction accounts at an
insured credit union.
``(II) Insured amount.--The Administration and the Federal
Deposit Insurance Corporation shall jointly issue a final
rule to establish the maximum amount for insurance described
in subclause (I), which shall be in an amount that is--
``(aa) not less than the standard maximum share insurance
amount and the standard maximum deposit insurance amount on
the date such rule is issued;
``(bb) not more than $5,000,000; and
``(cc) based on considerations of enhancing the financial
stability of the banking and credit union systems, promoting
economic growth, and providing for the safety of the Fund and
the Deposit Insurance Fund.
``(III) Exclusion.--The amount described in subclause (I)
shall not be taken into account when computing the net amount
due to a member, or to any person with funds lawfully held in
a member account, described in that subclause under clause
(i).''.
``(IV) No subsequent adjustments.--Beginning on the date on
which a rule is issued under subclause (II), the amount of
insurance provided under subclause (I) may not subsequently
be modified or repealed except by an Act of Congress.''.
(2) Technical and conforming amendments.--Section 101 of
the Federal Credit Union Act (12 U.S.C. 1752) is amended--
(A) in paragraph (5), by inserting ``such terms mean a
noninterest-bearing transaction account,'' after ``Act,'';
(B) in paragraph (8), by striking ``and'' at the end;
(C) in paragraph (9), by striking the period at the end and
inserting ``; and''; and
(D) by adding at the end the following:
``(10) The term `noninterest-bearing transaction account'
means an account of a member, or nonmember that is eligible
to maintain an insured account, maintained at an insured
credit union--
``(A) with respect to which interest is neither accrued nor
paid;
``(B) on which the member or account holder is permitted to
make withdrawals by negotiable or transferable instrument,
payment orders of withdrawal, telephone or other electronic
media transfers, or other similar items for the purpose of
making payments or transfers to third parties or others; and
``(C) on which the insured credit union does not reserve
the right to require advance notice of an intended
withdrawal.''.
(c) Transition Period.--
(1) Depository institutions.--
(A) In general.--Notwithstanding any other provision of
law, insured deposits in noninterest-bearing transaction
accounts, as described in clause (ii) of section 11(a)(1)(B)
of the Federal Deposit Insurance Act (12 U.S.C.
1821(a)(1)(B)), as added by subsection (a)(1) of this
section, shall be included in the determination of the value
of the estimated insured deposits described in sections
3(y)(3) and 7(b)(3)(B) of that Act (12 U.S.C. 1813(y)(3),
1817(b)(3)(B)) in accordance with the plan required under
subparagraph (B).
(B) Plan.--Not later than 1 year after the date of
enactment of this Act, the Federal Deposit Insurance
Corporation shall publish in the Federal Register a plan for
gradually increasing, during the period ending on the date
that is 10 years after the date of enactment of this Act, the
portion of insured deposits described in subparagraph (A) in
the determination described in that subparagraph, reaching
100 percent at the end of the period.
(2) Credit unions.--
(A) In general.--Notwithstanding any other provision of
law, insured shares in noninterest-bearing transaction
accounts, as described in clause (ii) of section 207(k)(1)(A)
of the Federal Credit Union Act (12 U.S.C. 1787(k)(1)(A)), as
added by subsection (b)(1) of this section, shall be included
in the determination of the value of the aggregate amount of
the insured shares, as defined in section 202(h) of that Act
(12 U.S.C. 1782(h)), in accordance with the plan required
under subparagraph (B).
(B) Plan.--Not later than 1 year after the date of
enactment of this Act, the National Credit Union
Administration Board shall publish in the Federal Register a
plan for gradually increasing, during the period ending on
the date that is 10 years after the date of enactment of this
Act, the portion of insured shares described in subparagraph
(A) in the determination described in that subparagraph,
reaching 100 percent at the end of the period.
(C) Capitalization deposit.--For purposes of section
202(c)(1) of the Federal Credit Union Act (12 U.S.C.
1782(c)(1)), insured shares described in subparagraph (A)
shall be taken into account only to the extent such insured
shares are included under the plan required under
subparagraph (B).
(D) Regulations.--The National Credit Union Administration
may issue such regulations, orders, or guidance as necessary
or appropriate to carry out subparagraphs (A), (B), and (C)
and to administer section 202 of the Federal Credit Union Act
(12 U.S.C. 1782) in a manner consistent with the transition
period described in subparagraph (B).
(d) Regulations.--The Federal Deposit Insurance Corporation
and the National Credit Union Administration may promulgate
regulations carrying out the amendments made by this section,
including prohibiting insured depository institutions, as
defined in section 3 of the Federal Deposit Insurance Act (12
U.S.C. 1813), insured credit unions, as defined in section
101 of the Federal Credit Union Act (12 U.S.C. 1752), and
third parties, as applicable, from evading the limitation of
insurance established under those amendments to only--
(1) noninterest-bearing transaction accounts;
(2) deposits or accounts at insured depository institutions
not excluded under clause (ii)(IV) of section 11(a)(1)(B) of
the Federal Deposit Insurance Act (12 U.S.C. 1821(a)(1)(B)),
as added by subsection (a) of this section; and
(3) shares, deposits, or accounts at insured credit unions.
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