S. 2113 – End the Fed’s Big Bank Bailout Act

AI-Generated Summary

Updated November 23, 2025 at 11:51 PM UTC

The End the Fed’s Big Bank Bailout Act changes the Federal Reserve’s rules so that depository institutions (such as commercial banks) will no longer earn interest on the funds they hold in accounts at Federal Reserve banks. This eliminates a source of earnings for large banks and alters how the Fed handles those balances.

Key Provisions

Amends the Federal Reserve Act to forbid any Federal Reserve bank from paying interest on balances that banks keep at the Fed.

Legislative Activity

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2 earlier actions

SenateCommittee Latest Action

Committee on Homeland Security and Governmental Affairs. Hearings held.

Homeland Security and Governmental Affairs Committee

December 11, 2025

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SenateIntro Referral

Introduced in Senate

June 18, 2025

SenateIntro Referral

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

Banking, Housing, and Urban Affairs Committee

June 18, 2025

SenateCommittee

Committee on Homeland Security and Governmental Affairs. Hearings held.

Homeland Security and Governmental Affairs Committee

December 11, 2025

Bill Text

Latest available legislative text

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Introduced in SenateIssued June 18, 2025

II

119th CONGRESS

1st Session

S. 2113

IN THE SENATE OF THE UNITED STATES

June 18, 2025

Mr. Paul introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs

A BILL

To amend the Federal Reserve Act to prohibit earnings on balances maintained at a Federal Reserve bank by or on behalf of a depository institution.

1.

Short title

This Act may be cited as the End the Fed’s Big Bank Bailout Act.

2.

Prohibition on earnings

Section 19(b) of the Federal Reserve Act (12 U.S.C. 461(b)) is amended by striking paragraph (12) and inserting the following:

(12)

Earnings on balances

No Federal Reserve bank may pay earnings on balances maintained at a Federal Reserve bank by or on behalf of a depository institution.

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