Banks win 45-day hold on your deposits—regulators say it's fraud prevention.

What it does

This bill amends the Expedited Funds Availability Act to allow banks to hold checks and wire transfers longer when they suspect fraud, up to 10 days initially and 45 days extended. It also lets regulators temporarily suspend the normal fast-availability rules for certain check types during periods of high fraud losses, and requires banks to notify customers when funds are held on fraud suspicion. The bill aims to reduce check and wire fraud losses borne by banks and the Treasury, but gives banks broad discretion to delay customer access to deposited funds.

Why we flagged it

The bill's operative mechanism is to exempt banks from the statutory obligation to make deposited funds available quickly, allowing them to hold customer money for up to 45 days during fraud investigations. This protects banks' balance sheets from fraud losses but imposes liquidity costs on depositors.

What the text implies

• The 'reasonable suspicion' standard is subjective and defined only as 'indicators that would lead a reasonable person to suspect fraud'—no objective threshold, creating risk of over-holding and inconsistent application across banks.
• Banks are permitted to communicate fraud holds to other banks without explicit customer consent, potentially flagging depositors as fraud-risk accounts across the financial system.
• The bill allows regulators to suspend fast-availability rules for entire check classes during 'material fraud losses,' meaning all customers of those check types lose access rights simultaneously, not just suspected fraudsters.
• Depositors harmed by wrongful holds have limited recourse: the bill requires notice but does not create liability for banks that hold funds based on incorrect fraud suspicion.
• Wire transfer holds can trigger overdraft fees if funds are delayed; the bill only prohibits overdraft fees if the bank failed to provide written notice—creating a notice-compliance loophole.

Section numbers refer to the bill text the analysis read — linked under Primary records below.

Who it affects

Ordinary depositors lose the statutory right to rapid access to their own deposited funds; banks gain broad discretion to hold funds for up to 45 days based on subjective 'reasonable suspicion' of fraud, creating cash-flow harm and uncertainty for individuals and small businesses. While fraud prevention is legitimate, the bill shifts the burden of fraud investigation onto depositors by delaying their access to money, rather than requiring banks to absorb fraud losses or use faster verification m

Who stands to gain

• depository institutions (banks and credit unions)
• the U.S. Treasury (reduced fraud losses on government checks)

Named in the bill

Board of Governors of the Federal Reserve System, Bureau of Consumer Financial Protection, Comptroller General of the United States, depository institutions, U.S. Treasury

Where it stands

3 cosponsors: 2 Democrats, 1 Republicans.

• Jun 18, 2026 — Introduced · Congress.gov: “Introduced in House”
• Jun 18, 2026 — Referred to House Committee on Financial Services · Congress.gov: “Referred to the House Committee on Financial Services”
• Jun 30, 2026 — Markup held in committee · Congress.gov: “Committee Consideration and Mark-up Session Held”
• Jun 30, 2026 — Reported out of committee · Congress.gov: “Ordered to be Reported (Amended) by the Yeas and Nays: 51 - 0”

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

Money around this bill

2 lobbying clients named this bill on 2 disclosure filings across 1 quarter, Jun 2026 to Jun 2026. Those filings disclosed $2,210,000 in lobbying spend. A filing names 26 bills on average, so that figure is what each filing reported, not a share belonging to this bill.

More lobbying clients named this bill than 41% of bills with at least one filing.

Young Kim, the sponsor, reported $1,636,312 in PAC receipts in the 2026 cycle.

• Independent Community Bankers of America — $2,170,000 on 1 filing
• American Council on Education — $40,000 on 1 filing

Lobbying Disclosure Act filings through Jul 20, 2026. A filing shows who paid to lobby on a bill it names, not what changed.