Bill would let banks hold more reciprocal deposits without stricter rules
Passed one chamberH.R. 3234Latest action
Sponsor: Tom Emmer · Representative · MN
AIDecoded by AI · checked against the recordRead the official text
Official title: Keeping Deposits Local Act
119th Congress
Topics: Jobs & the economy
Introduced:
Read the official bill on Congress.govIn plain words
The plain-language version comes first. The official text is always the reference.
HR 3234 raises limits on reciprocal deposits banks can hold before facing stricter brokered-deposit rules.
45-second read · 4 questions answered below
What does this do?
This bill raises the limit on reciprocal deposits banks can hold before those deposits are reclassified as "brokered deposits," which face stricter regulatory treatment. It uses a sliding scale based on bank size and requires banks to have a CAMELS safety rating of 1, 2, or 3 to qualify. It also requires an FDIC study on reciprocal deposits since 2018, due to Congress within six months, plus a minor technical change to a Federal Reserve surplus fund effective in 2036.
Who does it affect?
The bill mainly affects banks, especially small and mid-sized community banks that use reciprocal deposits to attract large deposits from local businesses, municipalities, and nonprofits.
Why does it matter?
The change could shift how local businesses and governments decide where to keep large deposits, since banks may compete differently for that money. Everyday customers are not directly affected by the rule changes.
AI-drafted summary. Check it against the official text before you act on it.
Based on the “Referred in Senate” text of May 21, 2026.
Read the official bill on Congress.govMake the call
Where does it stand?
- IntroducedMay 7, 2025
- House committee
- House vote
- SenateYou are here · May 21, 2026
- The president's desk
Right now: it passed the House, and the official record shows nothing new since. If the Senate changes it, it goes back to the House before reaching the president.
Latest action: — Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
Recorded votes
Roll-call votes recorded since January 3, 2025.
House · · Roll call 177
As recorded
- Question
- On Motion to and Pass, as Amended
- Result:
- Passed
- 405
- Nay
- 0
- 0
- 25
Republicans 200 yes, 17 not voting · Democrats 204 yes, 8 not voting · Independent 1 yes
Official recordHow members voted
The official record lists how each member voted.Official record