PlainBillCongress, translated.Legislation. Context. Public interest.Referred to the House Committee on Financial Services.
Congressional Research Service
Version 00 · Introduced in House · Jan 3, 2025
Prohibition on IOER Act of 2025
This bill prohibits a Federal Reserve bank from paying interest to a depository institution on reserve balances in excess of minimum requirements.
People & committees
Rep. Davidson, Warren [R-OH-8] · R–OH
Legislative record
A procedural vote is different from passage. Passage in one chamber does not establish enactment. Explore the glossary.
Referred to the House Committee on Financial Services.
Introduced in House
Introduced in House
Primary sources
Text links open the official source. We also preserved the text version used in the PlainBill explanation below.
No related bills are listed in this snapshot. This does not establish whether the proposal has appeared in earlier Congresses.
Source last updated: Sep 5, 2025. Consult Congress.gov for the current record.
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Analyze H.R.146 as objectively as possible. Explain its main provisions, who would be affected, possible benefits and harms, implementation, exceptions, and uncertainties. Present the strongest arguments for and against it, and identify evidence needed to assess its public impact.
Examine H.R.146 through a progressive lens, focusing on fairness, access, economic inequality, and effects on vulnerable communities. Explain potential benefits, costs, and unintended consequences. Consider the strongest counterarguments and distinguish stated goals from demonstrated outcomes.
Examine H.R.146 through a conservative lens, focusing on fiscal responsibility, institutional stability, federalism, and the scope of government. Explain potential benefits, costs, and unintended consequences. Consider the strongest counterarguments and any provisions that challenge this perspective.
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PlainBill explanation
Based on the full Introduced in House · 2025-01-03 text. This explanation has not received human editorial review. This overview describes the proposal’s major provisions; it does not establish what its real-world effects would be.
H.R. 146 would narrow the Federal Reserve Act’s provision for paying earnings on reserve balances to reserves that deposit-taking institutions are required to maintain. It would also prohibit Federal Reserve banks from paying earnings on those institutions’ balances except as allowed by the amended statutory paragraph. These are proposed changes, not evidence of enacted law.
(2) in subparagraph (A), by inserting after Balances the following: of reserves required to be maintained by a depository institution under paragraph (2) that are;
A Federal reserve bank may not pay earnings on balances maintained at a Federal reserve bank by or on behalf of a depository institution except as provided under this paragraph.
Section 2 would amend section 19(b)(12) of the Federal Reserve Act by adding “required reserve” to its heading and limiting the balances described in subparagraph (A) to reserves required under paragraph (2). The bill does not reproduce those existing provisions.
Section 19(b)(12) of the Federal Reserve Act (12 U.S.C. 461(b)(12)) is amended— (1) in the heading, by inserting required reserve before balances; (2) in subparagraph (A), by inserting after Balances the following: of reserves required to be maintained by a depository institution under paragraph (2) that are;
A new subparagraph (C) would prohibit a Federal Reserve bank from paying earnings on balances held by or for a deposit-taking institution unless the payment is permitted under that statutory paragraph. Existing subparagraph (C) would become subparagraph (D).
(3) by redesignating subparagraph (C) as subparagraph (D); and (4) by inserting after subparagraph (B) the following: (C) Prohibition on other earnings A Federal reserve bank may not pay earnings on balances maintained at a Federal reserve bank by or on behalf of a depository institution except as provided under this paragraph.
The supplied actions snapshot, updated September 5, 2025, records introduction in the House and referral to the House Committee on Financial Services on January 3, 2025.
Source snapshot updated 2025-09-05T14:43:15Z. 2025-01-03: Referred to the House Committee on Financial Services. 2025-01-03: Introduced in House
A closer look
Reviewed version: Introduced in House · 2025-01-03. These findings describe provisions and who may benefit; they are not judgments of waste, corruption, or motive.
This review covers the supplied bill text. “None identified” does not rule out provisions in later versions or accompanying reports and disclosures.
Provisions outside the bill’s main subject, or policy changes attached to appropriations.
None identified in the reviewed text
No unrelated provision or appropriations rider was identified in the complete supplied introduced text. This conclusion applies only to that version, not other versions or accompanying materials.
Spending directed to particular recipients or places outside ordinary competitive or formula-based allocation.
None identified in the reviewed text
No congressionally directed spending for particular recipients or places was identified in the complete supplied introduced text. This conclusion does not establish the contents of other versions or accompanying disclosure and committee materials.
Narrow exceptions, exemptions, or preferential treatment that warrant a closer look.
None identified in the reviewed text
No materially narrow preferential benefit was identified in the complete supplied introduced text. This conclusion is limited to that version; the existing statutory provisions it amends are not reproduced.
Full text preserved for this analysis. Legislative record snapshot: Sep 5, 2025. How PlainBill uses AI