Keeping Deposits Local Act
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.
HB3234, known as the Keeping Deposits Local Act, aims to change how much money banks can transfer between branches without needing a broker. This bill amends the Federal Deposit Insurance Act to modify the rules about reciprocal deposits, which are funds transferred between different branches of the same bank. It's intended to ensure that banks can move money locally without the extra cost and paperwork required for brokered deposits.
This bill would affect banks and financial institutions by potentially lowering their costs and making it easier for them to manage their funds. Consumers might indirectly benefit from lower banking fees and improved services if banks can operate more efficiently. The bill has bipartisan support, with sponsors from both major political parties.
As of May 7, 2025, HB3234 was introduced and referred to the House Committee on Financial Services. It passed a report on September 16, 2025, and was further considered and amended in November 2025. Most recently, on May 20, 2026, the House voted to pass the bill with a significant majority, signaling strong support for the changes it proposes.
