All Roll Calls
Yes: 393 • No: 16
119-hr-5317119th CongressWALLET
Community Bank Deposit Access Act of 2025
Sponsored By: Representative Hill, J. French [R-AR-2]
Passed House
Summary
Creates a narrow rule that lets small, well‑capitalized banks treat certain custodial deposits as not brokered up to 20% of their liabilities. It also caps interest paid on those deposits when a bank is not well capitalized and reduces a Reserve surplus by $4.0 million effective September 1, 2036.
Show full summary
- Small and mid‑size banks: Banks with under $10 billion in assets and acceptable examination ratings can count custodial deposits up to 20% of liabilities as non‑brokered. That can ease funding constraints for eligible institutions.
- Plan administrators and beneficiaries: Custodial arrangements for retirement plans and similar accounts are defined so those deposits can stay insured and easier to place at local custodial providers.
- Regulators and pricing: Institutions that are not well capitalized face caps on rates paid for custodial deposits tied to local market rates or FDIC national benchmarks to deter above‑market offers.
*Reduces the discretionary surplus fund by $4.0 million effective Sept 1, 2036, a small future reduction in federal balances that slightly strains the budget.*
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Bill Overview
Analyzed Economic Effects
2 provisions identified: 0 benefits, 1 costs, 1 mixed.
Small banks: easier custodial deposits, rate cap
This bill would let qualifying small banks treat some custodial deposits—funds held for others by a custodian or trustee—as not brokered. The exclusion would apply only up to an amount equal to 20% of the bank’s total liabilities. To qualify, the bank would need under $10 billion in assets and a composite exam rating of 1, 2, or 3 and be well capitalized, or have a waiver. If a bank is not well capitalized, it would be barred from paying interest on custodial deposits that significantly exceeds the lower of local rates for similar terms or the FDIC’s national rate for deposits taken outside its normal market. The rate check would be made when the deposit is accepted.
Small cut to Federal Reserve surplus in 2036
This bill would reduce a Federal Reserve surplus fund amount by $4 million, effective September 1, 2036. It would adjust the statutory dollar figure for the Reserve Bank surplus; the bill does not specify other operational changes.
Sponsors & CoSponsors
Sponsor
Hill, J. French [R-AR-2]
AR • R
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
house vote • 5/20/2026
On Motion to Suspend the Rules and Pass, as Amended
Yes: 393 • No: 16