Bills · HR 3234
PASSED HOUSE· 119TH CONGRESS
House BillHR 3234Banking and financial institutions regulationBank accounts, deposits, capital
Keeping Deposits Local Act
INTRO MAY 7· LAST ACTION MAY 21
READING
3MIN
COSPONSORS
11BIPARTISAN
READER REACTIONS0 TOTAL
NO VOTES YET · BE THE FIRST
- Reported, not passed
LEGISLATIVE PROGRESS
STEP 4 / 8Introduced
In Committee
Reported
Passed House
Passed Senate
Conference
To President
Became Law
WHAT THE BILL DOES
AI-writtenThis bill matters because it changes how banks, particularly community banks, can manage their funds and offer services to large customers. By adjusting the rules for reciprocal deposits, it could reduce the regulatory burden on banks that use these programs, potentially freeing up resources or capital that could be used for local lending or other services. If this bill becomes law, banks might find it easier to keep large amounts of money deposited by local governments or businesses within their community, rather than having those funds move to larger banks or other financial products.
Conversely, if the bill doesn't pass, the current, stricter rules for brokered deposits would continue to apply to a larger portion of reciprocal deposits. This could limit the flexibility of some banks, particularly smaller ones, in managing large customer accounts and might make it harder for them to compete with larger institutions. The required study will also provide valuable insights into how these deposit arrangements impact financial stability and local economies, which could inform future policy decisions.
KEY PROVISIONS
4AI-extractedPROVISION 01
Changes the calculation for how much of a bank's reciprocal deposits are not considered "brokered deposits" by introducing a tiered system based on the bank's total liabilities.
This allows banks to hold a greater amount of reciprocal deposits without triggering stricter regulatory oversight and requirements.
PROVISION 02
Expands the eligibility criteria for banks to participate in reciprocal deposit programs by allowing institutions with a CAMELS rating of '3' to qualify, in addition to those with '1' or '2'.
This broadens the pool of financially stable banks that can engage in these deposit-sharing arrangements.
PROVISION 03
Requires the Federal Deposit Insurance Corporation (FDIC) to conduct a study on reciprocal deposits, analyzing their performance, usage, and risks.
This study will provide valuable data and analysis to policymakers regarding the benefits and potential drawbacks of reciprocal deposits.
PROVISION 04
Mandates the FDIC to submit a report of its findings from the study to specific Congressional committees within six months of the bill's enactment.
This ensures transparency and provides Congress with information to consider potential future legislative actions related to these deposits.
SPONSORSHIP
1 + 11
R· Minnesota
YRS IN OFFICE
11
BILLS LED
10
COSPONSOR BREAKDOWNBIPARTISAN · 54%
DEM 3 REP 8 IND 0
ACTION TIMELINE
21 EVENTSMAY 21
Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
MAY 20
Considered as unfinished business. (consideration: CR H3644-3645)
MAY 20
Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by the Yeas and Nays: (2/3 required): 405 - 0 (Roll no. 177).
MAY 20
On motion to suspend the rules and pass the bill, as amended Agreed to by the Yeas and Nays: (2/3 required): 405 - 0 (Roll no. 177).
BILL INFO
TypeHouse Bill
NumberHR 3234
Congress119th
StatusPassed House
IntroducedMay 7, 2025
Last actionMay 21, 2026
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PASSED HOUSE· 119TH CONGRESS · FINANCIAL SERVICES COMMITTEE · INTRODUCED MAY 7, 2025
House BillHR 3234Banking and financial institutions regulationBank accounts, deposits, capital
Keeping Deposits Local Act
INTRODUCED MAY 7, 2025· LAST ACTION MAY 21, 2026
PASSAGE CHANCES
—%
READING
3 min
COSPONSORS
11
COMPLEXITY
Moderate
