To authorize the Secretary of the Treasury to direct the Federal Deposit Insurance Corporation and the National Credit Union Administration to establish emergency transaction account guarantee programs, and for other purposes.

Bill Number

H.R. 8075

Origin Chamber

House

Congress

119th Congress, Session 2

Policy Area

Finance and Financial Sector

Status

Introduced

Latest Action

2026-03-25: Referred to the House Committee on Financial Services.

Last Updated

2026-04-17T19:43:30Z

AI-Generated Summary

Purpose

This bill (H.R. 8075) authorizes the Secretary of the Treasury to direct the Federal Deposit Insurance Corporation (FDIC) and the National Credit Union Administration (NCUA) to create temporary "emergency transaction account guarantee (TAG) programs." These programs would provide full insurance for non-interest-bearing transaction accounts (like basic checking accounts) at all insured banks and credit unions during severe financial stress events, to protect economic stability and prevent widespread deposit runs.

Key Provisions

• Trigger for Activation:
• Treasury Secretary, in consultation with the President, must determine a "banking stress event" (for banks) or "credit union stress event" (for credit unions)—defined as an exceptional, widespread drop in deposit or share stability that harms the economy or financial system.
• The program must be deemed necessary to avoid or reduce these harms.
• Immediate notice to FDIC/NCUA boards and the Federal Reserve.

• Program Scope:
• FDIC fully insures non-interest-bearing transaction accounts at all insured banks.
• NCUA fully insures equivalent accounts (called "shares" in credit unions) at all insured credit unions.
• Non-interest-bearing transaction account: A checking-like account with no interest (or a tiny "de minimis" amount set by the agency); allows withdrawals, transfers, or payments via checks, debit cards, ATMs, etc.

• Limits and Oversight:

| Limit | Details | |-------|---------| | Size | Maximum cost to insurance funds (FDIC's Deposit Insurance Fund or NCUA's Share Insurance Fund) set by Treasury before launch; increases require same approval process plus a justifying report to Congress. | | Duration | 6 months maximum; one 3-month extension possible with same approval and congressional report. | | Accountability | Treasury Secretary testifies to Congress within 30 days; Government Accountability Office (GAO) reviews and reports within 90 days after end. |

• Cost Recovery: Losses recovered via special assessments (fees) on insured institutions; for banks, also on holding companies (with Treasury approval); for credit unions, only on credit unions.
• Implementation: FDIC/NCUA can issue rules to run the programs.

Significant Changes to Existing Law

• Amends Section 13 of the Federal Deposit Insurance Act (FDIA) by adding subsection (l) for banks.
• Amends Section 207(k) of the Federal Credit Union Act (FCUA) by adding paragraph (7) for credit unions.
• Introduces new emergency authority not previously in these laws, shifting activation power to the Treasury Secretary (with presidential input) rather than solely to FDIC/NCUA, while adding strict limits, congressional notifications, and GAO audits absent in prior temporary programs (e.g., 2008 TAG).

Potential Impacts

• Government Agencies: Increases Treasury/FDIC/NCUA workload; potential strain on insurance funds, offset by assessments; enhances crisis response tools.
• Citizens/Depositors: Provides temporary full protection for everyday checking accounts (beyond standard $250,000 FDIC/NCUA limit), reducing panic withdrawals during crises.
• Banks/Credit Unions: Broad guarantee stabilizes operations but exposes them to future assessment fees.
• Economy: Could prevent bank runs, support lending, and stabilize financial system during stress, minimizing recession risks.
• No direct international relations impact noted.

Main Stakeholders

• Treasury Secretary and President: Decide activation and limits.
• FDIC and NCUA: Run programs and recover costs.
• Insured Banks, Credit Unions, and Holding Companies: Gain deposit stability but face assessments.
• Depositors/Account Holders: Benefit from full insurance on transaction accounts.
• Congress (Financial Services/Banking Committees): Receives testimony, reports, and justifications.
• GAO: Conducts post-program audits.
• Federal Reserve: Notified for coordination.

Notable Legal, Constitutional, or Political Implications

• Legal: Expands executive branch emergency powers in finance (via Treasury), with built-in checks like congressional reports and GAO reviews to ensure accountability; applies existing assessment rules to holding companies.
• Constitutional: Relies on Congress's commerce clause authority over banking; no direct challenges noted, but could raise separation-of-powers questions if seen as overly delegating to executive.
• Political: Provides bipartisan crisis tool (similar to 2008 actions) but invites debate on moral hazard (encouraging risky behavior due to guarantees) and fiscal costs; requires transparency to limit abuse.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Barr, Andy [R-KY-6]

Recent Actions

• 2026-03-25: Referred to the House Committee on Financial Services.
• 2026-03-25: Introduced in House
• 2026-03-25: Introduced in House

Bill Versions

• To authorize the Secretary of the Treasury to direct the Federal Deposit Insurance Corporation and the National Credit Union Administration to establish emergency transaction account guarantee programs, and for other purposes. — issued 2026-03-25 — PDF (12 pages)