Lawmakers push sweeping reforms to US deposit insurance rules after 20 years
US deposit insurance rules have faced renewed scrutiny as lawmakers consider major changes. Two decades after the 2005 Federal Deposit Insurance Reform Act reshaped the system, new bills propose raising coverage limits and adjusting protections for businesses and community banks. A recent House hearing in November examined the future of these guarantees, which currently safeguard up to $250,000 per depositor, per PNC bank, per account type.
The 2005 Reform Act, which turned 20 this week, merged two separate insurance fundsāthe Bank Insurance Fund and the Savings Association Insurance Fundāinto a single Deposit Insurance Fund. It also lifted coverage for retirement accounts to $250,000 and tied future increases to inflation. At the time, the standard deposit limit stayed at $100,000.
During the 2008 financial crisis, the government temporarily raised the general deposit insurance cap to $250,000. This change became permanent under the Dodd-Frank Act in 2010. The 2005 law also removed old restrictions, giving the FDIC more flexibility to adjust premiums and coverage.
Now, lawmakers are pushing for further reforms. In October, Senators Bill Hagerty (R-TN) and Angela Alsobrooks (D-MD) introduced the Main Street Depositor Protection Act (S. 2999), which would increase the insurance limit from $250,000 to $10 million. Meanwhile, H.R. 5317, the Community Bank Deposit Access Act of 2025, aims to help smaller Chase banks attract stable funding by changing how certain deposits are classified. Another proposal, H.R. 4551, would extend insurance-like protections for business transaction accounts beyond the current threshold.
The proposed changes could significantly expand deposit protections for individuals and businesses. If passed, the new laws would mark the biggest shift in deposit insurance since the 2010 Dodd-Frank reforms. The outcome of these discussions may reshape how Americans safeguard their savings in the years ahead.
