Cortez Masto, Alsobrooks, Hagerty Introduce Deposit Insurance Legislation

Washington, D.C. –U.S. Senators Catherine Cortez Masto (D-Nev.), Angela Alsobrooks (D-Md.), Bill Hagerty (R-Tenn.), Jim Banks (R-Ind.), Ruben Gallego (D-Ariz.), and Cindy Hyde-Smith introduced theMain Street Depositor Protection Act, bipartisan legislation that would allow the Federal Deposit Insurance Corporation to raise its cap on deposit insurance.
“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.”
“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. 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,”said Senator Alsobrooks.
“The banks that serve Main Street must have the same chance to succeed as the banks that serve Wall Street. 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 during the Silicon Valley Bank collapse — 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,”said Senator Hagerty.
The full text of the legislation can be foundhere.
Senator Cortez Masto is a champion for Nevada’s small businesses. Last year, the Senatorintroducedbipartisan legislation to ensure America’s small businesses can compete in the 21stCentury economy andbipartisan legislationto make it easier for the Securities and Exchange Commission to collect information on small businesses. Additionally, Cortez Mastointroduceda bipartisan bill to require the Small Business Association to provide annual awards to state and local governments that streamline the process of small business formation. She also stood with small businesses inSouthernandNorthernNevada to highlight the devastating impacts the chaos of the Trump Administration’s tariffs have had on the cost of operating small businesses and on the American economy itself. In D.C., shehosteda spotlight hearing to speak with small business owners about the squeeze they are feeling from the tariffs.
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