Hagerty, Alsobrooks, Colleagues Reintroduce Main Street Depositor Protection Act

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March 25, 2026
WASHINGTON—Today, United States Senators Bill Hagerty (R-TN) and Angela Alsobrooks (D-MD), along with Senators Jim Banks (R-IN), Catherine Cortez Masto (D-NV), Cindy Hyde-Smith (R-MS), and Ruben Gallego (D-AZ), reintroduced the updated, bipartisanMain Street Depositor Protection Act, legislation that expands deposit insurance coverage for noninterest-bearing transaction accounts. Representative Frank Lucas (R-OK-03) has introduced companion legislation in the U.S. House of Representatives.TheMain Street Depositor Protectiondirects the Federal Deposit Insurance Corporation (FDIC) to set a new cap between $250,000 and $5 million of additional deposit insurance coverage for noninterest-bearing transaction accounts at eligible banks and credit unions. The bill aims to enhance overall financial stability and strengthen the small and mid-sized lenders that drive economic growth in communities across the nation.“The banks that serve Main Street must have the same chance to succeed as the banks that serve Wall Street,”said Senator Hagerty.“This bipartisan, bicameral bill advances the Administration’s priority of preserving the central role of regional and community banks in the financial system of the future. It’s narrowly targeted to address a very specific concern that manifested itself in the events surrounding the collapse of Silicon Valley bank — a run on non-interest bearing transaction accounts typically used to make payrolls by small businesses that are very important customers for our local and regional banks.”“I am proud to have worked with Senator Hagerty to introduce our updated Main Street Depositor Protection Act with Senators Cortez Masto, Hyde-Smith, Gallego, and Banks,”said Senator Alsobrooks.“This bipartisan legislation would require a data driven process to increase deposit insurance coverage levels for business checking accounts at most banks and credit unions. Our small businesses are the backbone of the American economy, and they often rely on community banks and credit unions. Responsibly raising the deposit insurance threshold will protect employees and businesses in times of crisis and strengthen our overall financial system.”“This bill helps keep deposits in Indiana banks and supports small businesses that are the backbone of our communities,”said Senator Banks.“The small businesses that support our neighborhoods deserve peace of mind that the bank accounts they use for payroll and purchases will be insured,”said Senator Cortez Masto.“Increasing the insurance coverage levels on bank accounts that don’t generate interest is a commonsense way to ensure America’s main street is also protected if their bank unexpectedly fails.”“Community banks and credit unions represent a cornerstone for upholding most small businesses and start-ups in Mississippi and other states,”said Senator Hyde-Smith.“This bipartisan legislation authorizing the FDIC to raise the deposit insurance cap will protect not only these financial institutions, but also the small businesses that rely on access to their capital. Enacting this bill would be a win for small business growth, rural America, and our economy.”“In times of financial crisis, the biggest banks are bailed out and their customers are protected,”said Senator Gallego.“Small businesses, especially those in rural Arizona who rely on small and community banks, deserve the same reassurance that their hard-earned money is safe. This bipartisan bill levels the playing field and ensures that the backbones of our local economies remain strong and secure.”“The Main Street Depositor Protection Act ensures banks of all sizes continue to play a fundamental role in driving economic growth in their communities,”said Representative Frank D. Lucas.“I’m proud to support President Trump’s Main Street agenda by introducing a targeted bill that preserves Oklahoma banks’ competitiveness and enhances financial stability across the nation.”
“The Independent Community Bankers of America appreciates the introduction of Main Street Depositor Protection Act, which advances the important deposit insurance reform debate to support and improve our nation’s successful deposit insurance system by providing increased insurance coverage for small businesses while minimizing additional costs for community banks,”said Rebeca Romero Rainey, ICBA President and CEO.“Expanding deposit insurance coverage for noninterest-bearing transaction accounts will support the stability of bank deposits used to fund loans and support local economies. We thank Sens. Hagerty, Alsobrooks, Banks, Cortez Masto, Hyde-Smith, Gallego and Rep. Lucas for their work on behalf of community banks and the local communities they serve.”
“On behalf of mid-size banks across the country, I want to thank Senators Hagerty, Alsobrooks, Banks, Cortez Masto, Hyde-Smith, and Gallego for their steadfast commitment to deposit insurance modernization,”saidJim Ryan, Chairman of the Mid-Size Bank Coalition of America.“The commonsense legislation introduced today will allow Main Street banks to better serve their customers and keep capital in all communities across the country. The Mid-Size Bank Coalition of America thanks these Senators for their leadership and advocacy for Main Street businesses.”
“Tennessee’s banks appreciate Senator Hagerty’s leadership on theMain Street Depositor Protection Act,”said Colin Barrett, President and CEO of Tennessee Bankers Association.“This bill strengthens confidence for depositors while protecting community banks from higher premiums. It’s a smart, balanced approach that helps local banks keep serving the customers and communities that depend on them.”
Full text of the legislation can be foundhere.
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