Reciprocal Deposit Legislation Included in Housing Package Deal

June 16, 2026

Deposits

Bank Regulation

ARLINGTON, VA (June 16, 2026) — The leaders of the Senate and House banking committees announced today that they have reached a deal on a bipartisan housing package that includes landmark reciprocal deposits legislation. The Senate is expected to approve the bill as soon as this week, with the House acting on it shortly thereafter. When the bill clears both chambers, it will be sent to President Trump for his signature.

When enacted, the final bill will allow banks to count substantially more reciprocal deposits as nonbrokered, opening up more growth opportunities for banks nationwide.

It is significant that in reaching this agreement Congress has once again recognized the value of reciprocal deposits as relationship deposits and has done so in a thoroughly bipartisan manner. IntraFi is deeply grateful to the lawmakers in the Senate who championed this bill. That includes Sen. Mike Rounds, R-SD, and Sen. Mark Warner, D-VA, who first introduced the Senate version of the Keeping Deposits Local Act in September. They were backed by several key supporters: Senate Minority Leader Chuck Schumer, D-NY; Sen. Chris Van Hollen, D-MD; Sen. Katie Britt, R-AL; and Sen. Bernie Moreno, R-OH.

Importantly, the inclusion of the reciprocal bill was ultimately the result of a bipartisan compromise between Senate Banking Committee Chair Tim Scott, R-SC, and Ranking Member Elizabeth Warren, D-MA, who worked tirelessly to understand the full impact of how reciprocal deposits benefit community banks. IntraFi would like to express our gratitude to all of these lawmakers, as well as Senate Majority Leader John Thune, R-SD, who played a key role in making this agreement happen.

And of course, IntraFi remains deeply grateful to the bill’s House champions and coauthors: Financial Services Committee Chair French Hill, R-AR; Ranking Member Maxine Waters, D-CA; Majority Whip Tom Emmer, R-MN; Rep. Joyce Beatty, D-OH; and Rep. Gwen Moore, D-WI. Additional key players in the House include Reps. Andy Barr, R-KY; Dan Meuser, R-PA; Mike Flood, R-NE; Roger Williams, R-TX; Mike Ezell, R-MS; Pete Sessions, R-TX; Jared Golden, D-ME; Jack Bergman, R-MI; and Mike Rogers, R-AL.

The reciprocal bill would not have been possible without the hundreds of banks that reached out to House and Senate lawmakers urging them to take up this important legislation, describing not just how reciprocal deposits work, but why they are important to their communities and how they help community banks.

As with the bill’s passage in the House, IntraFi is grateful for the work of several national trade groups that urged lawmakers to support it: the Independent Community Bankers of America, the Community Development Bankers Association, and the National Bankers Association. Dozens of state trade groups also actively helped to build momentum for the bill, including the Virginia Bankers Association, the South Dakota Bankers Association, the Independent Bankers Association of Texas, South Carolina Independent Bankers, the Ohio Bankers League, the Minnesota Bankers Association, the Alabama Bankers Association, and more.

Last but not least, IntraFi would be remiss not to mention two bankers who testified at separate congressional hearings and spoke out in favor of the Keeping Deposits Local Act: Robert James, CEO of Carver State Bank of Savannah, Georgia, and Jill Castilla, CEO of Citizens Bank of Edmond in Oklahoma. Both deftly answered questions from lawmakers on how reciprocal deposits are instrumental in helping community banks.

Once the Senate and House act, the bill is expected to move quickly to the President’s desk.

About IntraFi

A trusted partner chosen by more than 3,000 financial services companies, IntraFi defines success not by the volume of transactions it enables, but by the quality of relationships it forms. Its network, established over 20 years ago, connects institutions of all sizes to help participants build stronger relationships with their customers, fund more loans, seamlessly manage their liquidity needs, and earn fee income. The network brings scale, giving each participant access to tens of billions of dollars in funding, the highest per‑depositor and per‑bank capacity, and the peace of mind of being able to make large‑dollar placements.

Media Contact

Rob Blackwell
Chief Content Officer & Head of External Affairs
IntraFi
rblackwell@intrafi.com
(703) 292‑3357

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Deposit placement through an IntraFi service is subject to the terms, conditions, and disclosures in applicable agreements. Deposits that are placed through an IntraFi service at FDIC-insured banks in IntraFi’s network are eligible for FDIC deposit insurance coverage at the network banks. The depositor may exclude banks from eligibility to receive its funds. To meet the conditions for pass-through FDIC deposit insurance, deposit accounts at FDIC-insured banks in IntraFi’s network that hold deposits placed using an IntraFi service are titled, and deposit account records are maintained, in accordance with FDIC regulations for pass-through coverage. Although deposits are placed in increments that do not exceed the FDIC standard maximum deposit insurance amount (“SMDIA”) at any one bank, a depositor’s balances at the institution that places deposits may exceed the SMDIA before settlement for deposits or after settlement for withdrawals or be uninsured (if the placing institution is not an insured bank). The depositor must make any necessary arrangements to protect such balances consistent with applicable law and must determine whether placement through an IntraFi service satisfies any restrictions on its deposits.