S. 2113 · Where this bill is now
In committee
Introduced in the Senate, Jun 18, 2025
What this bill does
In plain words · AI-written from the official summaryStops Federal Reserve interest payments to banks
Right now, banks can earn interest on the money they keep at the Federal Reserve. This bill would end that practice by prohibiting Federal Reserve banks from paying any earnings on those balances. The change would apply to all depository institutions that hold money at the Federal Reserve.
How it affects you
This primarily affects banks and other financial institutions that hold reserves at the Federal Reserve, not everyday customers directly. The official summary doesn't explain how this might change things for regular people, like the interest rates you'd see on savings accounts or loans.
Read the official summary (Introduced in Senate, Jun 18, 2025)
End the Fed’s Big Bank Bailout Act
This bill prohibits a Federal Reserve bank from paying earnings on balances maintained at a Federal Reserve bank by or on behalf of a depository institution. Currently, such balances may receive earnings at least once each quarter at a rate not to exceed the general level of short-term interest rates.
Written by AI (Claude) using only the official summary by the Congressional Research Service, the Library of Congress’s nonpartisan research staff. It can miss nuance, so check the official summary and the bill text for details.
1st SessionS. 2113
A BILL
End the Fed’s Big Bank Bailout Act
Sponsor: Sen. Rand Paul (R-KY) · Introduced Jun 18, 2025 · Finance and Financial Sector · 1 version of the text
Sources: Congress.gov actions and votes · bill text from GovInfo · latest official action Dec 11, 2025: “Committee on Homeland Security and Governmental Affairs. Hearings held.”