OFFICIALS LEGISLATION INTEREST GROUPS PUBLIC STATEMENTS COMMITTEES VETOES

Keeping Deposits Local Act

Floor Speech

Date: May 19, 2026
Location: Washington, DC

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Mrs. BEATTY. Mr. Speaker, I rise in support of my bill, H.R. 3234, the Keeping Deposits Local Act, which I am very proud to co-lead with Congressman Emmer.

This bill modernizes the treatment of reciprocal deposits to help small banks and midsize banks improve liquidity, increase local community lending, and better compete for larger accounts, all without jeopardizing the safety and the soundness of our financial system.

Following the bank failures in 2023, we have seen many banks turn to reciprocal deposits to meet consumer demand, to increase their insured deposits, and, really, to prevent capital flight.

However, community banks across the country and regional banks like in my home district, banks like Huntington, Fifth Third, and KeyBank are quickly running up against the current $5 billion or 20 percent threshold that was established in 2018.

This means that they are limited in their capacity to attract deposits from nonprofits, small businesses, and local governments and municipalities that want to support economic and community development.

To solve this problem, this bill replaces the current cap with a tiered system to ensure that the greatest benefit goes to the banks that need it the most: minority depository institutions, MDIs; community development financial institutions, or CDFIs; and inner-city, rural, and small banks at the front lines of providing financial services to underserved communities.

Mr. Speaker, increasing nonbrokered treatment of reciprocal deposits will greatly support these institutions by allowing them to access stable funding to help finance affordable housing projects, small business loans, and community infrastructure.

That is why I am proud to say that this bill has the support of the Ohio Bankers League and the Ohio regional banks. It is a bipartisan bill.

Mr. Speaker, I thank our chairman, Congressman Hill, and I thank my ranking member, Congresswoman Maxine Waters, for supporting and pushing this bill forward. I urge my colleagues to support the passage of this bill.

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