Community Bank Deposit Access Act of 2025

• •Exempts custodial deposits from being classified as 'deposit broker' funds for eligible banks, provided they do not exceed 20% of the bank's total liabilities.
• •Defines an 'eligible institution' as an insured depository institution with less than $10 billion in total assets that is well-capitalized and has a composite rating of 1, 2, or 3.
• •Prohibits banks that fall below 'well-capitalized' status from paying interest rates on custodial deposits that significantly exceed local or national market rates.
• •Reduces the Federal Reserve's discretionary surplus fund by $4 million, effective September 1, 2036.
• •CBO estimates the bill will increase direct spending and revenues by at least $500,000.
• •Defines 'custodial deposit' to include funds held by agents, trustees, custodians, or plan administrators for the benefit of a third party.
• •Requires banks to report assets quarterly to the appropriate Federal banking agency to maintain eligibility.

The bill changes the regulatory classification of custodial deposits for banks with under $10 billion in assets, potentially increasing their liquidity and affecting how they manage interest rates on those deposits.

Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.