Small banks can hold more deposits without strict rules.

What it does

The bill lets banks hold more reciprocal deposits without following broker-deposit rules. Small banks under $1 billion can exclude 50% of these deposits. Mid-sized banks $1–10 billion can exclude 40%. Larger banks $10–250 billion can exclude 30%. The bill also tells the FDIC to study reciprocal deposits. It cuts the Federal Reserve's fund by $28 million starting in 2036.

Who it affects

Small and mid-sized banks benefit because they can hold more deposits without strict rules. Businesses, nonprofits, and towns use reciprocal deposits. They may find it easier to keep money safe across multiple banks. The changes may affect how stable the banking system stays. This happens if many banks rely on these deposits.

One thing to notice

The FDIC must study reciprocal deposits in six months. The study cannot stop the new rules from working right away.

From the analysis of the bill text, linked under Primary records below.

Where it stands

11 cosponsors: 8 Republicans, 3 Democrats.

• May 7, 2025 — Introduced · Congress.gov: “Introduced in House”
• May 7, 2025 — Referred to House Committee on Financial Services and Senate Committee on Banking, Housing, and Urban Affairs · Congress.gov: “Referred to the House Committee on Financial Services”
• Sep 16, 2025 — Markup held in committee · Congress.gov: “Committee Consideration and Mark-up Session Held”
• Sep 16, 2025 — Reported out of committee · Congress.gov: “Ordered to be Reported (Amended) by the Yeas and Nays: 51 - 0”
• May 19, 2026 — Floor vote scheduled · Congress.gov: “Mr. Hill (AR) moved to suspend the rules and pass the bill, as amended”
• May 20, 2026 — Passed the House · Congress.gov: “On motion to suspend the rules and pass the bill, as amended Agreed to by the Yeas and Nays: (2/3 required)…”

Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.

Money around this bill

6 groups reported lobbying about this bill. They filed 7 reports from Jun 2026 to Jun 2026.

Those reports show $3,770,000 in lobbying spending. Each report lists about 9 bills. So that money was not all for this bill.

More groups named this bill than 82% of bills with any report.

Tom Emmer, who sponsored the bill, received $2,362,750 from PACs for the 2026 election.

• Independent Community Bankers of America — $2,170,000 in 1 report
• Jpmorgan Chase Holdings LLC — $1,190,000 in 1 report
• Huntington Bancshares Incorporated — $170,000 in 1 report
• Western Alliance Bancorporation — $150,000 in 1 report
• New York Bankers Association — $90,000 in 2 reports

Lobbying is legal. These reports show who lobbied about this bill, not what changed.

Words to know

• reciprocal deposits — Money placed at one bank through an intermediary to spread it across many banks for safety.
• broker-deposit rules — Government rules that limit how many deposits a bank can hold through intermediaries to prevent risk.
• FDIC — The Federal Deposit Insurance Corporation, which protects bank deposits up to $250,000 per account.
• lobbying — Trying to influence lawmakers about a bill. Companies and groups pay people to do this.
• PACs — Groups that collect money and give it to candidates for office.
• sponsored — To sponsor a bill is to introduce it in Congress and put your name on it.