AI-assisted analysis based on the official CRS summary. Source version: Aug 27, 2026. Analysis updated: Sep 15, 2026.
01 — The Text
What.
- The bill prohibits Federal Reserve banks from paying interest on reserve balances held by depository institutions.
- Currently, depository institutions can receive earnings on their Federal Reserve balances at least quarterly, up to the general level of short-term interest rates.
- The bill would eliminate this interest payment mechanism entirely.
02 — The Stakes
So what?
- The documented effect is the termination of interest payments on depository institution reserves at the Federal Reserve.
- Other economic effects are not established in the official summary provided.
- The bill's impact on monetary policy, banking behavior, or fiscal outcomes cannot be determined from the summary.
03 — The Path
Now what?
- Introduced in Senate on June 18, 2025.
- Referred to the Committee on Banking, Housing, and Urban Affairs on June 18, 2025.
- The Committee on Homeland Security and Governmental Affairs held hearings on December 11, 2025.
- No further recorded action is available.
Legislative History
Actions.
- Dec 11, 2025 — Committee on Homeland Security and Governmental Affairs. Hearings held.
- Jun 18, 2025 — Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- Jun 18, 2025 — Introduced in Senate