Prohibition on IOER Act of 2025

Bill: 119-hr-146
Sponsor: full_name: Rep. Davidson, Warren [R-OH-8]
Introduced: 2025-01-03
Policy area: Finance and Financial Sector
Subjects: Banking and financial institutions regulation

Federal Reserve System

Financial services and investments

Interest, dividends, interest rates
Latest action: action_date: 2025-01-03
text: Referred to the House Committee on Financial Services.

Summaries:
action_date: 2025-01-03
action_desc: Introduced in House
text: <p><strong>Prohibition on IOER Act of 2025</strong></p><p>This bill prohibits a Federal Reserve bank from paying interest to a depository institution on reserve balances in excess of minimum requirements.&nbsp;</p>

tv_txt: I 119th CONGRESS 1st Session H. R. 146 IN THE HOUSE OF REPRESENTATIVES January 3, 2025 Mr. Davidson introduced the following bill; which was referred to the Committee on Financial Services A BILL To amend the Federal Reserve Act to prohibit Federal reserve banks from paying interest on excess reserves.

1. Short title This Act may be cited as the Prohibition on IOER Act of 2025 . 2. Prohibition on payment of earnings on surplus reserves Section 19(b)(12) of the Federal Reserve Act ( 12 U.S.C. 461(b)(12) ) is amended— (1) in the heading, by inserting required reserve before balances ; (2) in subparagraph (A), by inserting after Balances the following: of reserves required to be maintained by a depository institution under paragraph (2) that are ; (3) by redesignating subparagraph (C) as subparagraph (D); and (4) by inserting after subparagraph (B) the following: (C) Prohibition on other earnings A Federal reserve bank may not pay earnings on balances maintained at a Federal reserve bank by or on behalf of a depository institution except as provided under this paragraph. .