S. 2113 · In committee · Finance and Financial Sector

End the Fed’s Big Bank Bailout Act

Sponsor: Rand Paul (R-KY)

What it does

• Prohibits a Federal Reserve bank from paying earnings on balances that depository institutions maintain at a Federal Reserve bank.
• Ends a practice under which such balances may earn interest at least quarterly at a rate not exceeding the general level of short-term interest rates.
• Has had hearings in the Senate Homeland Security and Governmental Affairs Committee.

Official summary

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.

Latest action

Dec 11, 2025: Committee on Homeland Security and Governmental Affairs. Hearings held.

Committee: Senate Homeland Security and Governmental Affairs