PlainBillCongress, translated.Legislation. Context. Public interest.Congressional Research Service
Version 07 · Reported to House · Feb 2, 2026
Least Cost Exception Act
This bill allows the Federal Deposit Insurance Corporation (FDIC) to waive the least-cost resolution requirement for failed insured depository institutions and use alternative methods of resolution, particularly alternatives that do not involve global systemically important banks (G-SIBs).
Under current law, the FDIC must use the resolution method (such as a deposit payoff or the purchase and assumption of a bank’s assets and liabilities) that costs the FDIC's Deposit Insurance Fund the least to implement when an insured depository institution fails.
Showing the opening paragraphs of the official summary.
The bill provides an exception to this requirement if the following criteria are met:
the alternative method is the least costly of all alternatives that do not involve a G-SIB and that do not exceed the cost of liquidation;
the difference in cost between the selected alternative and the cost of a resolution involving a purchase and assumption by a G-SIB is less than a maximum cost as established by rule;
if the alternative involves a person purchasing assets or assuming liabilities, that person must pay an assessment to the FDIC; and
it is determined that the risks to the fund are outweighed by the benefits of limiting the concentration of U.S. banking under G-SIBs.
FDIC must issue a report on any use of the exception established by this bill containing an analysis of the economic impact of cost differences between the selected alternative and the least-cost alternative.
People & committees
Rep. Flood, Mike [R-NE-1] · R–NE
Legislative record
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Placed on the Union Calendar, Calendar No. 405.
Reported (Amended) by the Committee on Financial Services. H. Rept. 119-474.
Reported (Amended) by the Committee on Financial Services. H. Rept. 119-474.
Ordered to be Reported (Amended) by the Yeas and Nays: 50 - 0.
Committee Consideration and Mark-up Session Held
Committee Consideration and Mark-up Session Held
Referred to the House Committee on Financial Services.
Introduced in House
Introduced in House
Primary sources
Text links open the official source. We currently store references to these documents.
Source last updated: Sep 19, 2026. Consult Congress.gov for the current record.
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