{"format":1,"id":"119-hr-3234","congress":119,"number":"H.R. 3234","kind":"bill","group":"bills","title":"Keeping Deposits Local Act","title_source":"Short Title(s) as Passed House","official_title":"To amend the Federal Deposit Insurance Act to modify the amount of reciprocal deposits of an insured depository institution that are not considered to be funds obtained by or through a deposit broker, and for other purposes.","titles":[{"type":"Official Title as Introduced","title":"To amend the Federal Deposit Insurance Act to modify the amount of reciprocal deposits of an insured depository institution that are not considered to be funds obtained by or through a deposit broker, and for other purposes."},{"type":"Display Title","title":"Keeping Deposits Local Act"},{"type":"Short Titles from RFS (Referred to Senate) bill text","title":"Keeping Deposits Local Act"},{"type":"Short Title(s) as Passed House","title":"Keeping Deposits Local Act"},{"type":"Official Title from EH (Engrossed in House) bill text","title":"To amend the Federal Deposit Insurance Act to modify the amount of reciprocal deposits of an insured depository institution that are not considered to be funds obtained by or through a deposit broker, and for other purposes."},{"type":"Short Title(s) as Reported to House","title":"Keeping Deposits Local Act"}],"outcome":"passed_house","law_number":null,"introduced":"2025-05-07","chambers":{"house":{"status":"roll_call","date":"2026-05-20","vote":{"id":"119-2026-h177","question":"On Motion to Suspend the Rules and Pass, as Amended","title":"Keeping Deposits Local Act","result":"Passed","yea":405,"nay":0,"present":0,"not_voting":25,"source":"https://clerk.house.gov/evs/2026/roll177.xml"}},"senate":{"status":"pending","date":null,"vote":null}},"president":{"status":"not_yet","date":null},"vice_president_tie_breaker":null,"latest_action":{"text":"Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.","date":"2026-05-21"},"nominees":null,"amendments":[],"other_votes":[],"crs_summary":{"date":"2025-05-07","stage":"Introduced in House","blocks":[{"k":"p","t":"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."},{"k":"p","t":"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.)"}],"words":165},"summary":{"main_subject":{"text":"Changes the Federal Deposit Insurance Act so that reciprocal deposits of an insured depository institution up to amounts set by tiers of its total liabilities are not treated as funds obtained through a deposit broker, and requires a study of reciprocal deposits.","cites":[{"label":"Sec. 2","href":"https://www.congress.gov/bill/119th-congress/house-bill/3234/text/eh#H6EF379E07A8A4D74B2B2CC8A4925B7D1"},{"label":"Sec. 3","href":"https://www.congress.gov/bill/119th-congress/house-bill/3234/text/eh#H3EE549D63CA04C8D8F660FBACB61F57A"},{"label":"Sec. 4","href":"https://www.congress.gov/bill/119th-congress/house-bill/3234/text/eh#H29F940E29EFE4B8CB646181E7E257FDF"}]},"core_areas":["Reciprocal deposits and the deposit broker definition","Supervisory rating requirement for agent institutions","FDIC study of reciprocal deposits"],"what_it_does":[{"text":"Replaces paragraph (1) of section 29(i) of the Federal Deposit Insurance Act so that reciprocal deposits of an agent institution, up to a sum of three amounts based on its total liabilities, are not considered funds obtained by or through a deposit broker.","cite":{"label":"Sec. 2","href":"https://www.congress.gov/bill/119th-congress/house-bill/3234/text/eh#H6EF379E07A8A4D74B2B2CC8A4925B7D1"}},{"text":"Sets the first amount at 50 percent of the portion of an agent institution's total liabilities that is less than or equal to $1,000,000,000.","cite":{"label":"Sec. 2","href":"https://www.congress.gov/bill/119th-congress/house-bill/3234/text/eh#H6EF379E07A8A4D74B2B2CC8A4925B7D1"}},{"text":"Sets the second amount at 40 percent of the portion of total liabilities greater than $1,000,000,000 but less than or equal to $10,000,000,000, and the third at 30 percent of the portion greater than $10,000,000,000 but less than or equal to $250,000,000,000.","cite":{"label":"Sec. 2","href":"https://www.congress.gov/bill/119th-congress/house-bill/3234/text/eh#H6EF379E07A8A4D74B2B2CC8A4925B7D1"}},{"text":"Changes the definition of agent institution so that an institution qualifies if, when most recently examined, it was assigned a CAMELS rating of 1, 2, or 3 under the Uniform Financial Institutions Rating System, or an equivalent rating under a comparable system.","cite":{"label":"Sec. 3","href":"https://www.congress.gov/bill/119th-congress/house-bill/3234/text/eh#H3EE549D63CA04C8D8F660FBACB61F57A"}},{"text":"Directs the Federal Deposit Insurance Corporation, in consultation with the Board of Governors of the Federal Reserve System, to study reciprocal deposits, including their performance since 2018, usage by institution size, usage during periods of stress, and their benefits and potential risks.","cite":{"label":"Sec. 4","href":"https://www.congress.gov/bill/119th-congress/house-bill/3234/text/eh#H29F940E29EFE4B8CB646181E7E257FDF"}},{"text":"Requires the Federal Deposit Insurance Corporation to report its findings to the House Committee on Financial Services and the Senate Committee on Banking, Housing, and Urban Affairs not later than 6 months after enactment.","cite":{"label":"Sec. 4","href":"https://www.congress.gov/bill/119th-congress/house-bill/3234/text/eh#H29F940E29EFE4B8CB646181E7E257FDF"}}],"unexpected":[{"category":"off_subject","items":[{"cite":{"label":"Sec. 5","href":"https://www.congress.gov/bill/119th-congress/house-bill/3234/text/eh#H76B131C5D0604F4984CD26C0655EAC46"},"heading":"Discretionary Surplus Fund","effect":"Reduces the dollar amount specified in section 7(a)(3)(A) of the Federal Reserve Act by $28,000,000, effective September 1, 2036.","amount":"$28,000,000","quote":"The dollar amount specified under section 7(a)(3)(A) of the Federal Reserve Act (12 U.S.C. 289(a)(3)(A)) is reduced by $28,000,000."}]}],"version":{"type":"Engrossed in House","date":"2026-05-20","rule":"passed","href":"https://www.congress.gov/bill/119th-congress/house-bill/3234/text/eh"},"current":true,"model":"claude-sonnet-5-5","approved":"2026-10-03","approved_by":"checks"},"sources":{"congress_gov":"https://www.congress.gov/bill/119th-congress/house-bill/3234","text":"https://www.congress.gov/bill/119th-congress/house-bill/3234/text"},"card":{"image":"card/item/119-hr-3234.png","v":"2e5013a131f0","alt":"Votes on Record. H.R. 3234, 119th Congress: Keeping Deposits Local Act. House: 405 Yea, 0 Nay. Senate: not yet considered. Outcome: Passed House, 20 May 2026."}}