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CIVIC HERALD
HR 5317 · 119th Congress · HouseIn committee

Community Bank Deposit Access Act of 2025

In plain language: This bill allows community banks with under $10 billion in assets to accept more deposits from trust companies and retirement plan managers without those funds being penalized as higher-risk "brokered deposits." Financially sound banks could hold these custodial funds up to 20 percent of their total liabilities without triggering extra regulatory restrictions or fees. If a bank falls below federal health standards, it is barred from offering above-market interest rates to attract these deposits. To offset federal budget impacts, the bill also reduces the Federal Reserve’s surplus reserve cap by $4 million starting in September 2036.

Provisional: our plain-language summary, pending review.

Provisionalunreviewed: impact, provisions, stakeholders, summary
People affected—Not determinable from the text provided; the bill targets banking institutions with under $10 billion in assets and custodial deposit arrangements rather than a defined individual population count.
Fiscal magnitude$4.0Mprovisional · pending reviewSection 3(a) directly reduces the statutory surplus capital limitation of the Federal Reserve under 12 U.S.C. 289(a)(3)(A) by $4,000,000.
Reach28provisional · pending reviewrigor: heuristic llm
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Issues

What this bill touches.

Banking/financial rules−28

The sign shows the bill's direction on each issue (+ toward, − away); the number is its magnitude. Color never encodes good or bad, and never party.

Who it affects

Who it helps · who it burdens.

Who it helps

  • Community banks with less than $10 billion in assetsQualifying custodial deposits up to 20 percent of their total liabilities will not be treated as brokered deposits under the Federal Deposit Insurance Act, freeing them from certain regulatory restrictions on gathering deposits.provisional

Who it burdens

  • Participating community banks that are not well-capitalizedRestricted from paying interest rates on custodial deposits that significantly exceed prevailing local or national deposit rates.provisional

Who backs it

  • Federal Reserve BanksThe statutory cap on the surplus capital the Federal Reserve can hold is reduced by $4 million beginning September 1, 2036, requiring those funds to be transferred to the Treasury.provisional

Dollar-level funding (FEC sector totals) is coming in a later phase.

What it does

The provisions, in plain language.

  1. Exempts qualifying custodial deposits placed at community banks with less than $10 billion in assets from being treated as brokered deposits, up to 20 percent of the bank's total liabilities.

    Sec. 2(a)provisional

  2. Prohibits participating banks that are not well-capitalized from paying interest rates on custodial deposits that significantly exceed prevailing local or national market rates.

    Sec. 2(b)provisional

  3. Reduces the maximum amount of surplus capital the Federal Reserve is allowed to retain by $4 million, starting September 1, 2036.

    Sec. 3(a)provisional

How your members of Congress line up

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Timeline

How it moved.

  1. May 21, 2026Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
  2. May 20, 2026Motion to reconsider laid on the table Agreed to without objection.
  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): 393 - 16 (Roll no. 179).
  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): 393 - 16 (Roll no. 179).
  5. Nov 4, 2025Reported (Amended) by the Committee on Financial Services. H. Rept. 119-369.
  6. Nov 4, 2025Reported (Amended) by the Committee on Financial Services. H. Rept. 119-369.
  7. Sep 16, 2025Ordered to be Reported (Amended) by the Yeas and Nays: 48 - 2.
  8. Sep 11, 2025Introduced in House
  9. Sep 11, 2025Introduced in House

The original text

Read it for yourself.

Read the original text →

Sources & provenance

Congress.govrefreshed 9 days ago

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