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Congress·In Committee·25 days ago

Senate Bill Would Raise FDIC Insurance to $10M for Business Checking Accounts at Community Banks

Also known as: Main Street Depositor Protection Act

Legislative Progress

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House
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Impact Analysis

Scores: 1 = low, 5 = highSentiment: -5 to +5 (net benefit)

Key Points

  • Congress is considering a plan to increase insurance for certain bank accounts from the usual $250,000 limit up to $10 million. This change specifically targets checking accounts that do not earn interest, which are often used by businesses to manage their daily cash.
  • This policy is designed to help small businesses, nonprofits, and local governments that keep large amounts of money in the bank to pay employees and bills. If a bank fails, these depositors would be protected for up to $10 million instead of losing everything over the current $250,000 limit.
  • The higher insurance would only be available at smaller and mid-sized banks. The nation's largest 'too big to fail' banks are excluded from this program to encourage people and businesses to keep their money in local and regional financial institutions.
  • Smaller banks with $10 billion or less in total assets would be exempt from certain fees usually required to fund this insurance during a transition period. This helps local banks offer the extra protection without facing immediate high costs.
  • If the bill sponsored by Mr. Hagerty becomes law, the government would have one year to create a plan to phase in these changes over a 10-year period. This slow rollout is meant to ensure the national insurance funds for banks and credit unions remain stable.
Economy Finance

Milestones

2 milestones3 actions
Feb 5, 2026Senate

Committee on Banking, Housing, and Urban Affairs. Hearings held.

Oct 9, 2025Senate

Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Oct 9, 2025

Introduced in Senate

Related News

4 articles
Forbes·3 months ago

Raising FDIC Insurance To $10 Million Is A Dangerous Mistake

Steve Forbes contends that the Main Street Depositor Protection Act would expose taxpayers to enormous risk and eliminate market discipline, primarily benefiting wealthy corporations rather than the ordinary Americans the bill's 'populist branding' claims to protect.

R−
Alabama Political Reporter·4 months ago

Proposed FDIC deposit insurance increase a slippery slope

This local analysis warns that the Hagerty-Alsobrooks bill is a 'handout to large regional banks' that picks winners and losers by excluding the nation's largest banks while potentially putting taxpayers on the hook for future bailouts.

R−
Find Know Do·4 months ago

Senators Introduce Bipartisan Bill to Expand Deposit Insurance Coverage

The legislation authorizes the FDIC and NCUA to insure up to $10 million for non-interest-bearing transaction accounts, specifically excluding subsidiaries of global systemically important banks to focus the benefit on community and regional institutions.

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Source Information

Document Type

Congressional Bill

Official Title

Main Street Depositor Protection Act

Bill NumberS 2999
Congress119th Congress
ChamberSenate
Latest ActionCommittee on Banking, Housing, and Urban Affairs. Hearings held.

Sponsor

Cosponsors

(1)
D: 1

Analysis generated by AI. While we strive for accuracy, this should not be considered legal or professional advice. Always verify information with official government sources.