hold on there's just too much going on in Congress lmao...
Expands FDIC insurance for noninterest-bearing checking accounts up to $5 million.
Sen. Bill Hagerty (R-TN), with 6 co-sponsors from both parties.
Introduced in Senate, referred to Banking Committee.
This bill amends the Federal Deposit Insurance Act to create a new category of deposit insurance for noninterest-bearing transaction accounts (basically, checking accounts that pay no interest). Currently, the standard insurance limit is $250,000 per depositor per bank. Under this bill, the FDIC would set a new limit between $250,000 and $5 million for these accounts. The extra coverage would be phased in over 10 years. Small banks with assets under $10 billion would not pay extra fees for this coverage. The bill also applies similar rules to credit unions via the NCUA. Sponsor Bill Hagerty is a Republican from Tennessee and a member of the Banking Committee. The bill has bipartisan support from Senators Alsobrooks (D-MD), Banks (R-IN), Cortez Masto (D-NV), Hyde-Smith (R-MS), Gallego (D-AZ), and Wicker (R-MS). Being in committee means it hasn't yet been voted on by the full Senate.
Introduced Mar 25, 2026
This bill is under review by a committee. The committee holds hearings, gathers testimony from experts and stakeholders, and may propose amendments. If the committee votes to advance it, the bill moves to the full chamber for debate and a vote.
The bill provides extra insurance only for accounts that pay no interest and allow unlimited withdrawals—typical business checking accounts. Individuals with high balances, such as from a home sale or inheritance, would also benefit. Global systemically important banks (like Bank of America or Citigroup) and U.S. branches of foreign banks are excluded from offering this extra coverage, so customers there would still have only the standard $250,000 limit. Small banks and credit unions with assets under $10 billion are exempt from special assessments for this new insurance, meaning they won't have to raise fees to cover the cost.
Supporters Say
Supporters say the bill protects small businesses and local governments that need to keep large sums in checking accounts to run payroll and operations.
Critics Say
Critics argue it could destabilize the banking system by reducing depositor discipline, as people would have less incentive to move money to safer banks.
Supporters note that after the 2023 bank failures, many businesses with deposits over $250,000 faced uncertainty. This bill aims to prevent runs on small and regional banks by reassuring depositors that their funds are safe. Critics, including some economists, worry that higher insurance limits could encourage risky behavior by banks, since depositors won't monitor bank health as closely. However, the bill excludes the largest banks from the new coverage, which may limit systemic risk. The bipartisan sponsorship suggests it has broad appeal, though the Banking Committee will likely debate the cost to the Deposit Insurance Fund.