End the Fed’s Big Bank Bailout Act

This bill, titled the End the Fed’s Big Bank Bailout Act, would ban Federal Reserve banks from paying any earnings on balances maintained by or on behalf of a depository institution. In other words, it eliminates the interest payments (currently known as interest on reserve balances) that banks and other depository institutions earn on their reserve balances held at the Federal Reserve. The bill amends the Federal Reserve Act by striking the current clause that authorizes earnings on balances and replacing it with a prohibition. Authorship and status: The bill was introduced in the Senate (S. 2113) by Senator Rand Paul on June 18, 2025 and referred to the Senate Committee on Banking, Housing, and Urban Affairs. It has not yet become law.