WHAT THE LAW DOINCongress, in plain words

H.R. 3234 · 119th Congress

Keeping Deposits Local Act

Passed HouseFinance and Financial Sector
IntroducedMay 7, 2025
Passed HouseMay 20, 2026
Passed SenateNot yet
To PresidentNot yet
Became lawNot yet

Where it stands

Passed House. Latest step, May 21, 2026: Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs. The House passed it 405–0. It would change 1 section of existing law and would add 2 new provisions of its own.

How this bill changes the law

Sourced

H.R. 3234 would change 1 section of existing law, and would create 2 new provisions of its own. Read from the bill text as sent to the Senate (May 21, 2026).

12 U.S.C. 1831f Brokered deposits

  • (i) Limited exception for reciprocal deposits changed · Sec. 2, Sec. 3 · see the words

New provisions of the bill's own

  • Sec. 4 Reciprocal deposits study
  • Sec. 5 Discretionary Surplus Fund
What the words would change: every change, in place (2)

Today's wording of each part of the law, with what would be struck out and added. Each change also gives the bill's own instruction, word for word.

  1. 12 U.S.C. 1831f(i)changedby H.R. 3234 Sec. 2

    (1) In general.— The sum of the following amounts of reciprocal deposits of an agent institution shall not be considered to be funds obtained, directly or indirectly, by or through a deposit broker:(A) An amount equal to 50 percent of the portion of the total liabilities of the agent institution that is less than or equal to $1,000,000,000.(B) An amount equal to 40 percent of the portion, if any, of the total liabilities of the agent institution that is greater than $1,000,000,000, but less than or equal to $10,000,000,000.(C) An amount equal to 30 percent of the portion, if any, of the total liabilities of the agent institution that is greater than $10,000,000,000, but less than or equal to $250,000,000,000.

    The bill says: Section 29(i) of the Federal Deposit Insurance Act (12 U.S.C. 1831f(i)) is amended by striking paragraph (1) and inserting the following:

    Bill text · Current law (12 U.S.C. 1831f)

  2. 12 U.S.C. 1831f(i)(2)(A)(i)changedby H.R. 3234 Sec. 3

    The bill says: Section 29(i)(2)(A)(i) of the Federal Deposit Insurance Act (12 U.S.C. 1831f(i)(2)(A)(i)) is amended by striking subclause (I) and inserting the following:

    Bill text · Current law (12 U.S.C. 1831f)

From the bill's official text on GovInfo and the U.S. Code, 2024 edition, which may not yet show changes made since.

What it does

Sourced

This bill increases the amount insured depository institutions may accept as reciprocal deposits. (Reciprocal deposits are used by institutions to increase the availability of deposit insurance by splitting large deposits using a reciprocal network of institutions.) The bill creates a tiered system so that the allowable amount is based on the institution's total liabilities.

Additionally, the bill changes certain qualifications insured depository institutions may be required to have to accept reciprocal deposits. Under current law, institutions may qualify by having a composite rating of outstanding or good, among other requirements. The bill allows institutions with a 1, 2, or 3 rating under the CAMELS scale to qualify. (The Uniform Financial Institutions Rating System uses the characteristics of capital adequacy, asset quality, management, earnings, liquidity, and sensitivity to market risk (i.e., CAMELS ratings) to rate the health of financial institutions, with a 1 indicating the highest rating and least degree of supervisory concern and a 5 indicating the lowest rating and highest degree of supervisory concern.)

Official summary by the Congressional Research Service (Introduced in House, May 7, 2025).

Our plain-language breakdown, with what it means for you and the case for and against, is written once a bill starts to move.

What has happened

Sourced
  1. May 21, 2026Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.Senate
  2. May 20, 2026Motion to reconsider laid on the table Agreed to without objection.House floor actions
  3. May 20, 2026On motion to suspend the rules and pass the bill, as amended Agreed to by the Yeas and Nays: (2/3 required): 405 - 0 (Roll no. 177). Roll call recordHouse floor actions
  4. May 20, 2026Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by the Yeas and Nays: (2/3 required): 405 - 0 (Roll no. 177). Roll call recordLibrary of Congress
  5. May 20, 2026Considered as unfinished business. (consideration: CR H3644-3645)House floor actions
  6. May 19, 2026At the conclusion of debate, the Yeas and Nays were demanded and ordered. Pursuant to the provisions of clause 8, rule XX, the Chair announced that further proceedings on the motion would be postponed.House floor actions
  7. May 19, 2026DEBATE - The House proceeded with forty minutes of debate on H.R. 3234.House floor actions
  8. May 19, 2026Considered under suspension of the rules. (consideration: CR H3582-3584; text: CR H3582)House floor actions
  9. May 19, 2026Mr. Hill (AR) moved to suspend the rules and pass the bill, as amended.House floor actions
  10. Nov 4, 2025Placed on the Union Calendar, Calendar No. 314.House floor actions
  11. Nov 4, 2025Reported (Amended) by the Committee on Financial Services. H. Rept. 119-362.House floor actions
  12. Nov 4, 2025Reported (Amended) by the Committee on Financial Services. H. Rept. 119-362.Library of Congress
  13. Sep 16, 2025Ordered to be Reported (Amended) by the Yeas and Nays: 51 - 0.House committee actions
  14. Sep 16, 2025Committee Consideration and Mark-up Session HeldHouse committee actions
  15. May 7, 2025Referred to the House Committee on Financial Services.House floor actions
  16. May 7, 2025Introduced in HouseLibrary of Congress
  17. May 7, 2025Introduced in HouseLibrary of Congress

Show key steps only

Recorded votes

Sourced
  1. May 20, 2026 · HousePassed 405–0
    On Motion to Suspend the Rules and Pass, as Amended · needed two-thirds
    R 200 yes, 0 noI 1 yes, 0 noD 204 yes, 0 noEach member · Record

Cosponsors

  • Andy Barr R-KY-6
  • Joyce Beatty D-OH-3
  • Jack Bergman R-MI-1
  • Mike Ezell R-MS-4
  • Mike Flood R-NE-1
  • Jared F. Golden D-ME-2
  • Daniel Meuser R-PA-9
  • Gwen Moore D-WI-4
  • Mike Rogers R-AL-3
  • Pete Sessions R-TX-17
  • Roger Williams R-TX-25