# 119-hr-3234: Keeping Deposits Local Act

119-hr-3234, Keeping Deposits Local Act, is a 119th Congress bill sponsored by Rep. Emmer, Tom [R-MN-6] (R-MN); status passed_house; PRIA reads it as touching household money (as of 2026-09-21).

- Canonical: https://policyrisk.com/legislation/119-hr-3234
- As of: 2026-09-21
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 119-hr-3234
- Congress: 119
- Title: Keeping Deposits Local Act
- Status: passed_house
- Introduced: 2025-05-07
- Sponsor: Rep. Emmer, Tom [R-MN-6] (R-MN)
- Cosponsors: 11
- Policy area: Finance and Financial Sector
- Touches household money: yes
- Last recorded action: 2026-09-21

## Summary

**Expands the safe harbor for reciprocal deposits so more of those funds would not be counted as brokered deposits.** It would also redefine which banks qualify as "agent institutions" by tying that label to CAMELS ratings, require an FDIC study on reciprocal deposits, and reduce the Federal Reserve's discretionary surplus fund. - Banks: A three-tier safe harbor lets banks exclude larger shares of reciprocal deposits from brokered-deposit treatment — 50% of liabilities up to $1 billion, 40% of liabilities between $1 billion and $10 billion, and 30% of liabilities above that up to $250 billion. - Depositors: The FDIC must analyze reciprocal deposit use by size and by end users including municipalities, businesses, and nonprofits, and study behavior during stress periods. - Regulators: An "agent institution" would be limited to banks with a most recent CAMELS rating of 1, 2, or 3, and the FDIC must report the study's findings to the House and Senate banking committees within six months. *It would reduce the Federal Reserve System's discretionary surplus fund by $28 million, effective Sept. 1, 2036.*

## Cosponsors (11)

- Rep. Beatty, Joyce [D-OH-3] (D-OH), 2025-05-07T00:00:00.000Z
- Rep. Meuser, Daniel [R-PA-9] (R-PA), 2025-05-07T00:00:00.000Z
- Rep. Moore, Gwen [D-WI-4] (D-WI), 2025-05-07T00:00:00.000Z
- Rep. Barr, Andy [R-KY-6] (R-KY), 2025-05-20T00:00:00.000Z
- Rep. Flood, Mike [R-NE-1] (R-NE), 2025-07-02T00:00:00.000Z
- Rep. Williams, Roger [R-TX-25] (R-TX), 2025-07-02T00:00:00.000Z
- Rep. Ezell, Mike [R-MS-4] (R-MS), 2025-09-11T00:00:00.000Z
- Rep. Sessions, Pete [R-TX-17] (R-TX), 2025-09-15T00:00:00.000Z
- Rep. Golden, Jared F. [D-ME-2] (D-ME), 2025-09-18T00:00:00.000Z
- Rep. Bergman, Jack [R-MI-1] (R-MI), 2025-09-18T00:00:00.000Z
- Rep. Rogers, Mike D. [R-AL-3] (R-AL), 2025-11-04T00:00:00.000Z

## Votes

| Date | Chamber | Question | Result | Yea | Nay |
| --- | --- | --- | --- | --- | --- |
| 2026-05-20T00:00:00.000Z | house | On Motion to Suspend the Rules and Pass, as Amended | Passed | 405 | 0 |

## Provisions PRIA read

- Easier bank rules for reciprocal deposits: benefit, medium. If enacted, some banks would get simpler treatment for reciprocal deposits. A bank would qualify as an agent institution if its last safety exam rating was 1, 2, or 3 (CAMELS or equivalent). For liabilities up to $1 billion, 50% of reciprocal deposits would not count as brokered. For the portion ov…
- Small cut to Fed surplus in 2036: mixed, low. If enacted, the Federal Reserve’s discretionary surplus would be reduced by $28 million on September 1, 2036. This is an internal accounting change. Any effect on your taxes, bank services, or government payments would be indirect and would happen later.

## Related bills

- 119-hr-8800: National Defense Authorization Act for Fiscal Year 2027
- 119-hr-9877: Health Equity and Accountability Act of 2026
- 119-hr-3838: Streamlining Procurement for Effective Execution and Delivery and National Defense Authorization Act for Fiscal Year 2026
- 119-hr-979: AM Radio for Every Vehicle Act of 2025
- 119-hr-1502: North Platte Canteen Congressional Gold Medal Act
- 119-hconres-12: Supporting the Local Radio Freedom Act.

## Sources
- [119-hr-3234 on Congress.gov](https://www.congress.gov/bill/119th-congress/house-bill/3234)

## Related
- [119-hr-8800: National Defense Authorization Act for Fiscal Year 2027](https://policyrisk.com/legislation/119-hr-8800)
- [119-hr-9877: Health Equity and Accountability Act of 2026](https://policyrisk.com/legislation/119-hr-9877)
- [119-hr-3838: Streamlining Procurement for Effective Execution and Delivery and National Defe…](https://policyrisk.com/legislation/119-hr-3838)
- [119-hr-979: AM Radio for Every Vehicle Act of 2025](https://policyrisk.com/legislation/119-hr-979)
- [119-hr-1502: North Platte Canteen Congressional Gold Medal Act](https://policyrisk.com/legislation/119-hr-1502)
- [119-hconres-12: Supporting the Local Radio Freedom Act.](https://policyrisk.com/legislation/119-hconres-12)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/119-hr-3234 (as of 2026-09-21).