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HR9331119th CongressWALLET

STOP Payments Fraud Act of 2026

Sponsored By: Representative Kim, Young [R-CA-40]

In Committee

Summary

Creates new, fraud-based holds on check and wire deposits and gives regulators a temporary "parity" tool to treat some check types like local checks during fraud surges. The bill pairs those authorities with required joint rulemaking by the Federal Reserve and the Consumer Financial Protection Bureau and a Comptroller General study to inform Congress.

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  • Families and account holders: Banks may delay funds for checks or wire transfers when there is "reasonable suspicion" of fraud. Initial holds can last up to 10 days with extended holds up to 45 days, and accounts flagged for greater fraud risk may face holds up to 60 days per occurrence.
  • Depository institutions: Banks get explicit, rule-based authority to apply fraud exceptions and a time-limited option to give parity in funds availability for specified check classes. Institutions must give written reasons in notices, keep records of notices, and face exam-based compliance checks.
  • Regulators and lawmakers: The Fed and CFPB must adopt final implementing rules within one year and may make parity determinations for particular check classes for up to 1 year. The Comptroller General must study state laws, hold practices, and other reforms and report to congressional committees within nine months of final rules.

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Bill Overview

Analyzed Economic Effects

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

Faster availability for some checks

This bill would let the Federal Reserve and the CFPB decide whether two specific classes of checks named in current law should get the same fast availability as local checks during periods of material fraud losses. The agencies would be required to consider fraud losses to the U.S. Treasury or banks and the impact on payors and recipients and to act within six months of enactment (they may act later). Any affirmative decision would make funds from that check class available like local checks for a period set by the agencies but not longer than one year. The agencies would have to report the basis for any affirmative determination to congressional banking committees within 60 days.

Banks can delay checks and wires

This bill would let banks delay availability of deposited checks or received wire transfers when the bank reasonably suspects the payment is false, unauthorized, or fraudulent. Rules would allow an initial hold up to 10 days and an extended hold up to 45 days; accounts identified by rule as high fraud risk could be held up to 60 days per occurrence. The Federal Reserve and the CFPB would have to write final rules within one year, and these changes would take effect 60 days after those rules are adopted. If you did not get the required written notice when a wire was delayed and an overdraft would not have happened except for the hold, the bank would not be allowed to charge an overdraft fee. Agencies would monitor compliance and banks would keep records of the required notices.

Sponsors & CoSponsors

Sponsor

Kim, Young [R-CA-40]

CA • R

Cosponsors

  • Rep. Lawler, Michael [R-NY-17]

    NY • R

    Sponsored 6/29/2026

  • Rep. Gonzalez, Vicente [D-TX-34]

    TX • D

    Sponsored 6/29/2026

  • Rep. Garcia, Sylvia R. [D-TX-29]

    TX • D

    Sponsored 6/30/2026

Roll Call Votes

No roll call votes available for this bill.

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