I
119THCONGRESS
1
STSESSION H. R. 146
To amend the Federal Reserve Act to prohibit Federal reserve banks from
paying interest on excess reserves.
IN THE HOUSE OF REPRESENTATIVES
JANUARY3, 2025
Mr. D
AVIDSONintroduced the following bill; which was referred to the
Committee on Financial Services
A BILL
To amend the Federal Reserve Act to prohibit Federal
reserve banks from paying interest on excess reserves.
Be it enacted by the Senate and House of Representa-1
tives of the United States of America in Congress assembled, 2
SECTION 1. SHORT TITLE. 3
This Act may be cited as the ‘‘Prohibition on IOER 4
Act of 2025’’. 5
SEC. 2. PROHIBITION ON PAYMENT OF EARNINGS ON SUR-6
PLUS RESERVES. 7
Section 19(b)(12) of the Federal Reserve Act (12 8
U.S.C. 461(b)(12)) is amended— 9
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•HR 146 IH
(1) in the heading, by inserting ‘‘REQUIRED RE-1
SERVE’’ before ‘‘BALANCES’’; 2
(2) in subparagraph (A), by inserting after 3
‘‘Balances’’ the following: ‘‘of reserves required to be 4
maintained by a depository institution under para-5
graph (2) that are’’; 6
(3) by redesignating subparagraph (C) as sub-7
paragraph (D); and 8
(4) by inserting after subparagraph (B) the fol-9
lowing: 10
‘‘(C) P
ROHIBITION ON OTHER EARN -11
INGS.—A Federal reserve bank may not pay 12
earnings on balances maintained at a Federal 13
reserve bank by or on behalf of a depository in-14
stitution except as provided under this para-15
graph.’’. 16
Æ
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