S2113119th CongressWALLET

End the Fed’s Big Bank Bailout Act

Sponsored By: Senator Sen. Paul, Rand [R-KY]

In Committee

Summary

ban Federal Reserve banks from paying earnings on balances held for depository institutions. This bill would replace the earnings paragraph in Section 19(b) of the Federal Reserve Act to remove the ability of depository institutions to earn interest on balances they maintain at Federal Reserve banks while leaving other powers, definitions, programs, and funding in the Act unchanged.

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 0 benefits, 1 costs, 0 mixed.

Banks lose interest on Fed reserves

This bill would stop Federal Reserve banks from paying earnings on balances held at the Fed. This applies to balances held by or for depository institutions like banks, thrifts, and credit unions. If enacted, those institutions would lose that interest income. That could lead banks to pay lower interest on deposits, charge higher fees, or change loan pricing. The bill text gives no effective date, dollar amounts, or other program changes.

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Sponsors & CoSponsors

Sponsor

Sen. Paul, Rand [R-KY]

KY • R

Cosponsors

  • Sen. Sanders, Bernard [I-VT]

    VT • I

    Sponsored 7/21/2025

Roll Call Votes

No roll call votes available for this bill.

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