01 — The Text
What.
- Eliminates interest payments Federal Reserve banks currently make to large deposit-holding institutions on their reserve balances.
- Currently, banks earn quarterly interest on money held at the Fed, capped at short-term rate levels.
- This bill would stop that income stream entirely for depository institutions.
02 — The Stakes
So what?
- Big banks lose a revenue source; exact annual impact depends on current interest rates and reserve balances.
- Could reduce Fed operating costs or increase funds available for other purposes, though savings amount unclear.
- Tradeoff: may discourage banks from holding reserves at the Fed, potentially affecting monetary policy effectiveness.
03 — The Path
Now what?
- Bill sits in Banking Committee after hearings in December 2025; no floor vote scheduled yet.
- Single cosponsor suggests limited current support; needs broader backing to advance.
- Track progress at Congress.gov or contact your senators about their position on the bill.
Legislative History
Actions.
- Dec 11, 2025 — Committee on Homeland Security and Governmental Affairs. Hearings held.
- Jun 18, 2025 — Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- Jun 18, 2025 — Introduced in Senate