IB 
Union Calendar No. 314 
119TH CONGRESS 
1ST SESSION H. R. 3234 
[Report No. 119–362] 
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. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 7, 2025 
Mr. EMMER (for himself, Mrs. BEATTY, Mr. MEUSER, and Ms. MOORE of 
Wisconsin) introduced the following bill; which was referred to the Com-
mittee on Financial Services 
NOVEMBER 4, 2025 
Additional sponsors: Mr. BARR, Mr. FLOOD, Mr. WILLIAMS of Texas, Mr. 
EZELL, Mr. SESSIONS, Mr. GOLDEN of Maine, Mr. BERGMAN, and Mr. 
ROGERS of Alabama 
NOVEMBER 4, 2025 
Reported with an amendment, committed to the Committee of the Whole 
House on the State of the Union, and ordered to be printed 
[Strike out all after the enacting clause and insert the part printed in italic] 
[For text of introduced bill, see copy of bill as introduced on May 7, 2025] 
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A BILL 
To amend the Federal Deposit Insurance Act to modify 
the amount of reciprocal deposits of an insured deposi-
tory institution that are not considered to be funds ob-
tained by or through a deposit broker, and for other 
purposes. 
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Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Keeping Deposits Local 
Act’’. 
SEC. 2. AMOUNT OF RECIPROCAL DEPOSITS THAT ARE NOT 
CONSIDERED TO BE FUNDS OBTAINED BY OR 
THROUGH A DEPOSIT BROKER. 
Section 29(i) of the Federal Deposit Insurance Act (12 
U.S.C. 1831f(i)) is amended by striking paragraph (1) and 
inserting the following: 
‘‘(1) IN
GENERAL.—The sum of the following 
amounts of reciprocal deposits of an agent institution 
shall not be considered to be funds obtained, directly 
or indirectly, by or through a deposit broker: 
‘‘(A) An amount equal to 50 percent of the 
portion of the total liabilities of the agent insti-
tution 
that 
is 
less 
than 
or 
equal 
to 
$1,000,000,000. 
‘‘(B) An amount equal to 40 percent of the 
portion, if any, of the total liabilities of the 
agent 
institution 
that 
is 
greater 
than 
$1,000,000,000, but less than or equal to 
$10,000,000,000. 
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‘‘(C) An amount equal to 30 percent of the 
portion, if any, of the total liabilities of the 
agent 
institution 
that 
is 
greater 
than 
$10,000,000,000, but less than or equal to 
$250,000,000,000.’’. 
SEC. 3. DEFINITION OF AGENT INSTITUTION. 
Section 29(i)(2)(A)(i) of the Federal Deposit Insurance 
Act (12 U.S.C. 1831f(i)(2)(A)(i)) is amended by striking 
subclause (I) and inserting the following: 
‘‘(I) when most recently examined 
under section 10(d) was assigned a 
CAMELS rating of 1, 2, or 3 under 
the Uniform Financial Institutions 
Rating System (or an equivalent rat-
ing under a comparable rating sys-
tem); and’’. 
SEC. 4. RECIPROCAL DEPOSITS STUDY. 
(a) IN GENERAL.—The Federal Deposit Insurance 
Corporation, in consultation with the Board of Governors 
of the Federal Reserve System, shall carry out a study on 
reciprocal deposits. 
(b) CONTENTS.—The study required under subsection 
(a) shall include— 
(1) an analysis of how reciprocal deposits have 
performed since 2018, which shall include— 
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(A) the use of quantitative and qualitative 
data; 
(B) a breakdown of the usage of reciprocal 
deposits by size of insured depository institution; 
(C) the usage of reciprocal deposits during 
periods of stress; and 
(D) an analysis, to the extent practicable, of 
end-user depositors, such as municipalities, busi-
nesses, and non-profit organizations, that drive 
demand for reciprocal products; 
(2) an analysis, to the extent practicable, of how 
reciprocal deposits compare to other deposit arrange-
ments; and 
(3) an analysis of the benefits and potential risks 
of reciprocal deposits. 
(c) REPORT.—Not later than 6 months after the date 
of enactment of this Act, the Federal Deposit Insurance Cor-
poration shall issue a report to the Committee on Financial 
Services of the House of Representatives and the Committee 
on Banking, Housing, and Urban Affairs of the Senate con-
taining all findings and determinations made in carrying 
out the report required under subsection (a). 
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Union Calendar No. 314 
119TH CONGRESS 
1ST SESSION 
H. R. 3234 
[Report No. 119–362] 
A BILL 
To amend the Federal Deposit Insurance Act to 
modify the amount of reciprocal deposits of an 
insured depository institution that are not con-
sidered to be funds obtained by or through a de-
posit broker, and for other purposes. 
NOVEMBER 4, 2025 
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union, 
and ordered to be printed 
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