YourVoice.Now Summary
Corporate BenefitsYour MoneyBanks would lose the interest the Fed pays on trillions parked there — ending a payment stream that is also the Fed's main tool for setting rates.
Corporate Benefits
Since October 2008 the Federal Reserve has paid interest on the money banks keep in their accounts there. With trillions on deposit, those payments have run past one hundred billion dollars in a single year. The authority to pay them at all would be struck out.
Your Money
The rate paid on those balances is how the Fed sets a floor under short-term interest rates today. Without it, the Fed would have to keep reserves scarce again to hit its target, and short-term rates could move around more. Those rates feed through to loans, credit cards, and savings accounts.
More about this bill
Banks would stop earning interest on the cash they park at the Federal Reserve. Since 2008 the Fed has paid banks for the money sitting in their accounts there. Those balances run into the trillions. In recent years the payments have topped one hundred billion dollars a year. That income would end, for every bank, large or small. Whatever the Fed has left over goes to the Treasury, so more would stay with the public. The title says bailout, but the text does not touch emergency lending. It strikes one paragraph of the Federal Reserve Act and bars the payments outright. There is no phase-in, no small-bank carve-out, and no rate the Fed could still pay. There is a trade-off. Those same payments are the main lever the Fed uses to steer interest rates. It would need a new way to move the rates behind your mortgage, car loan, and savings account.
Congressional Summary
End the Fed’s Big Bank Bailout ActThis bill prohibits a Federal Reserve bank from paying earnings on balances maintained at a Federal Reserve bank by or on behalf of a depository institution. Currently, such balances may receive earnings at least once each quarter at a rate not to exceed the general level of short-term interest rates.
Legislative Subjects
Details
- Congress
- 119th
- Chamber
- Senate
- Status
- summarized
- Action
- Introduced in Senate
- Action Date
- 2025-06-18
- Date Added
- 2026-08-27
- Source
- Congress.gov →
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