Employee Paycheck and Small Business Protection Act

The Employee Paycheck and Small Business Protection Act would create a temporary government-guaranteed insurance program for certain business-focused transaction accounts and expand federal deposit and credit union share insurance to cover those accounts. In addition to establishing this expanded coverage, the bill sets up a temporary “Transaction Account Guarantee” program (TTAGP) for insured banks and credit unions, guaranteeing the net balance in covered transaction accounts for up to 180 days (with possible extensions) during a period of financial stress. The measure also requires data collection, rulemaking, and periodic reporting to ensure safety, soundness, and market competitiveness, and it includes procedural changes to speed Congress’s consideration of related actions. The expansion would be implemented through amendments to the Federal Deposit Insurance Act (FDIA) and the Federal Credit Union Act (FCUA). The sponsor shown is Ms. Waters, and the bill is in introduced status in the 119th Congress. In short: if enacted, business payment accounts (like payroll and vendor accounts) could receive up to $100 million of insured deposits per depositor per institution, and a temporary, government-backed guarantee would be available for covered transaction accounts for up to 180 days during a financial stability crisis, with specific rules, oversight, and sunset/extension mechanisms.