Lawmakers Introduce Deposit Insurance Reform Bills

Posted: Apr 01 2026

Lawmakers in the House and Senate today announced the introduction of four bills to revise the deposit insurance framework, with a focus on noninterest-bearing transaction accounts.

The Main Street Depositor Protection Act would raise the deposit insurance coverage limits for noninterest-bearing transaction accounts from $250,000 to $5 million for certain banks and credit unions. The legislation was reintroduced in the Senate by Sens. Angela Alsobrooks (D-Md.), Bill Hagerty (R-Tenn.) and others, and introduced in the House as a companion bill by Rep. Frank Lucas (R-Okla.). The legislation was previously introduced last year in the Senate, although that bill proposed raising the limit to $10 million.

In addition, Republicans on the House Financial Services Committee announced the introduction of three related bills. They are:

Legislation to direct the FDIC and National Credit Union Administration to establish emergency transaction account guarantee programs to ensure the deposits that are maintained in noninterest-bearing transaction accounts. Rep. Andy Barr (R-Ky.) is the sponsor.
The Growing Deposit Insurance for the Future Act by Rep. Dan Meuser (R-Pa.). The bill would update the inflation adjustment applicable to deposit insurance and share insurance.
A bill to require the FDIC and NCUA to study whether insurance coverage limits should be raised on covered transaction accounts. Rep. Marlin Stutzman (R-Ind.) is the sponsor.

To view the Hagerty/Alsobrooks bill, visit: https://www.alsobrooks.senate.gov/news/press-releases/alsobrooks-hagerty-introduce-deposit-insurance-legislation/

To view the House bill, visit: https://financialservices.house.gov/news/documentsingle.aspx?DocumentID=411070