S.Amdt. 3649

SA 3649. Mr. HAGERTY (for himself and Ms. Alsobrooks) submitted an
amendment intended to be proposed by him to the bill S. 2296, to
authorize appropriations for fiscal year 2026 for military activities
of the Department of Defense, for military construction, and for
defense activities of the Department of Energy, to prescribe military
personnel strengths for such fiscal year, and for other purposes; which
was ordered to lie on the table; as follows:

At the appropriate place, insert the following:

SEC. _____. TRANSACTION ACCOUNT INSURANCE.

(a) Depository Institutions.--
(1) In general.--Section 11(a)(1) of the Federal Deposit
Insurance Act (12 U.S.C. 1821(a)(1)) is amended--
(A) in subparagraph (B)--
(i) by striking ``The net amount'' and inserting the
following:
``(i) In general.--Subject to clause (ii), the net
amount''; and
(ii) by adding at the end the following:
``(ii) Insurance for noninterest-bearing transaction
accounts.--

``(I) In general.--Notwithstanding clause (i), the
Corporation shall insure the net amount, in an amount that is
not more than $20,000,000, that any depositor maintains, in
the aggregate, in 1 or more noninterest-bearing transaction
accounts at--

``(aa) an insured depository institution that is a
subsidiary of a depository institution holding company that
has total assets of less than $250,000,000,000; or
``(bb) an insured depository institution that has total
assets of less than $250,000,000,000 if the insured
depository institution is not a subsidiary of a depository
institution holding company.

``(II) Exclusion.--The amount described in subclause (II)
shall not be taken into account when computing the net amount
due to a depositor described in that subclause under clause
(i).''.

(2) Technical and conforming amendment.--Section 3(m) of
the Federal Deposit Insurance Act (12 U.S.C. 1813(m)) is
amended--
(A) in paragraph (1), by inserting ``, including deposits
in a noninterest-bearing transaction account,'' after
``deposits''; and
(B) by adding at the end the following:
``(5) Noninterest-bearing transaction account.--The term
`noninterest-bearing transaction account' means a deposit or
account maintained at an insured depository institution--
``(A) with respect to which interest is neither accrued nor
paid;
``(B) on which the depositor or account holder is permitted
to make withdrawals by negotiable or transferable instrument,
payment orders of withdrawal, telephone or other electronic
media transfers, or other similar items for the purpose of
making payments or transfers to third parties or others; and
``(C) on which the insured depository institution does not
reserve the right to require advance notice of an intended
withdrawal.''.
(b) Credit Unions.--
(1) In general.--Section 207(k)(1)(A) of the Federal Credit
Union Act (12 U.S.C. 1787(k)(1)(A)) is amended--
(A) by striking ``Subject to the provisions of paragraph
(2), the net amount'' and inserting the following:
``(i) Net amount of insurance payable.--Subject to clause
(ii) and the provisions of paragraph (2), the net amount'';
and
(B) by adding at the end the following:
``(ii) Insurance for noninterest-bearing transaction
accounts.--

``(I) In general.--Notwithstanding clause (i), the Board
shall insure the net amount, in an amount that is not more
than $20,000,000, that any member, or any person with funds
lawfully held in a member account, maintains, in the
aggregate, in 1 or more noninterest-bearing transaction
accounts at--

``(aa) an insured credit union that is a subsidiary of a
credit union holding company that has total assets of less
than $250,000,000,000; or
``(bb) an insured credit union that has total assets of
less than $250,000,000,000 if the insured credit union is not
a subsidiary of a credit union holding company.

``(II) Exclusion.--The amount described in subclause (I)
shall not be taken into account when computing the net amount
due to a member described in that subclause under clause
(i).''.

(2) Technical and conforming amendments.--Section 101 of
the Federal Credit Union Act (12 U.S.C. 1752) is amended--
(A) in paragraph (8), by striking ``and'' at the end;
(B) in paragraph (9), by striking the period at the end and
inserting a semicolon; and
(C) by adding at the end the following:
``(10) The term `insured deposit' includes deposit in a
noninterest-bearing transaction account; and
``(11) The term `noninterest-bearing transaction account'
means a deposit or account maintained at an insured credit
union--
``(A) with respect to which interest is neither accrued nor
paid;
``(B) on which the member or account holder is permitted to
make withdrawals by negotiable or transferable instrument,
payment orders of withdrawal, telephone or other electronic
media transfers, or other similar items for the purpose of
making payments or transfers to third parties or others; and
``(C) on which the insured credit union does not reserve
the right to require advance notice of an intended
withdrawal.''.
(c) Transition Period.--
(1) Depository institutions.--
(A) In general.--Notwithstanding any other provision of
law, insured deposits in noninterest-bearing transaction
accounts, as defined in clause (ii) of section 11(a)(1)(B) of
the Federal Deposit Insurance Act (12 U.S.C. 1821(a)(1)(B)),
as added by subsection (a)(1) of this section, shall be
included in the determination of the value of the estimated
insured deposits described in section 7(b)(3)(B) of the
Federal Deposit Insurance Act (12 U.S.C. 1817(b)(3)(B)) in
accordance with the plan required under subparagraph (B).
(B) Plan.--Not later than 1 year after the date of
enactment of this Act, the Federal Deposit Insurance
Corporation shall publish in the Federal Register a plan for
gradually including, during the period ending on the date
that is 10 years after the date of enactment of this Act, the
insured deposits described in subparagraph (A) in the
determination described in that subparagraph.
(2) Credit unions.--
(A) In general.--Notwithstanding any other provision of
law, insured deposits in noninterest-bearing transaction
accounts, as defined in clause (ii) of section 207(k)(1) of
the Federal Credit Union Act (12 U.S.C. 1787(k)(1)), as added
by subsection (b)(1) of this subsection, shall be included in
the determination of the value of the aggregate amount of the
insured shares described in paragraphs (1)(B) and (2)(B) of
section 202(h) of the Federal Credit Union Act (12 U.S.C.
1782(h)) in accordance with the plan required under
subparagraph (B).
(B) Plan.--Not later than 1 year after the date of
enactment of this Act, the National Credit Union
Administration Board shall publish in the Federal Register a
plan for gradually including, during the period ending on the
date that is 10 years after the date of enactment of this
Act, the insured deposits described in subparagraph (A) in
the determination described in that subparagraph.
(d) Regulations.--The Federal Deposit Insurance Corporation
and the National Credit Union Administration Board shall
promulgate regulations carrying out the amendments made by
this section, including prohibiting insured depository
institutions, as defined in section 3 of the Federal Deposit
Insurance Act (12 U.S.C. 1813), insured credit unions, as
defined in section 101 of the Federal Credit Union Act (12
U.S.C. 1752), and third parties, as applicable, from
bypassing the limitation of insurance established under those
amendments to--
(1) only noninterest-bearing transaction accounts; and
(2) only deposits or accounts at insured depository
institutions that are subsidiaries of depository institution
holding companies that have total assets of less than
$250,000,000,000 (or insured depository institutions that
have total assets of less than $250,000,000,000 if the
insured depository institutions are not subsidiaries of
depository institution holding companies).
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