CONGRESS FOR VOTERS

Bill Hagerty (R-TN)

S.Amdt. 6396

S.Amdt. 6396 · Senate amendment

A Republican amendment with 3 Democratic cosponsors · See all 4 cosponsors

Changes S. 4784 — National Defense Authorization Act for Fiscal Year 2027

Offered

Offered, and not voted on yet. Most amendments never get a vote: the Senate takes up the bill and moves on without them.

Its path through Congress

  1. Introduced
  2. Pending Consideration

What this amendment would do

SA 6396 aims to create additional insurance for noninterest-bearing transaction accounts at insured depository institutions and credit unions. This would be added to the existing standard maximum deposit or share insurance amounts.

Key Changes and Additions

  • New Insurance Coverage: The amendment directs the Corporation and the National Credit Union Administration to set a maximum insurance amount for these specific accounts. This amount must be at least the current standard maximum but cannot exceed $5,000,000.

  • Account Requirements: To qualify, a "noninterest-bearing transaction account" must:

    • Not accrue or pay interest.
    • Allow withdrawals via instruments like checks, electronic transfers, or phone calls for payments to third parties.
    • Not require advance notice for withdrawals.

  • Exclusions: This extra insurance cannot be used for accounts at:

    • Insured branches of foreign banks.
    • Depository institutions that are subsidiaries of bank holding companies identified as global systemically important BHC.

  • Protection for Smaller Institutions: Depository institutions with total assets of $10 billion or less will not be required to pay special assessments or certain assessment increases as a condition of providing this insurance.

  • Implementation:

    • The rules for the insurance amount must be issued within 6 months of enactment.
    • Once the amount is set, it cannot be changed or repealed unless Congress passes an Act.
    • A 10-year transition period will be established via a published plan to gradually increase the portion of these insured deposits/shares used in specific value determinations.