RepublicanBill · H.R. 3234· House(119-HR-3234)

Keeping Deposits Local Act

Rep. Emmer
Age: 65 years
Minnesota
Introduced
5/7/2025
Last activity
5/21/2026 — Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
Sponsored by
Tom Emmer
Cosponsors
Republican - 8Democrat - 3
Finance and Financial Sector
  1. Introduced
  2. Passed House
  3. In Senate committee

What this bill would do

The Keeping Deposits Local Act seeks to amend the Federal Deposit Insurance Act regarding reciprocal deposits. It modifies how much of an agent institution's reciprocal deposits are excluded from being considered funds obtained through a deposit broker. The bill also updates the definition of an agent institution based on its CAMELS rating. Additionally, it mandates that the FDIC conduct a study on reciprocal deposits in consultation with the Federal Reserve. Finally, the Act reduces the dollar amount specified under section 7(a)(3)(A) of the Federal Reserve Act by $28,000,000 effective September 1, 2036.

Yes

  • Does this make it easier to run a small business?+2

    By modifying the treatment of reciprocal deposits based on institution liability thresholds, the bill adjusts how local institutions can manage deposit structures.

  • Would business owners be better off under this?+1

    The modification of reciprocal deposit rules may benefit businesses that utilize these deposit products for liquidity management.

The opposite

  • Does this reduce what the federal government spends?-1

    The bill reduces the specified amount of the discretionary surplus fund by $28,000,000 effective in 2036.

What Congress actually voted on

One recorded vote has been taken on this bill.

  • The House: a fast-track vote, needing two-thirds to passPassed 405–0

    The House sets aside its normal procedure to move quickly: no amendments, little debate, and a two-thirds bar instead of a simple majority. It is used for measures expected to be uncontroversial, so a bill that fails here failed despite broad expectations that it would not.

    05/20/2026 · Roll call 177 · recorded as “On Motion to Suspend the Rules and Pass, as Amended”