Meuser Introduces Growing Deposit Insurance for the Future Act to Protect Americans’ Bank Accounts from Inflation

WASHINGTON, D.C. - Congressman Dan Meuser (PA-09), a member of the House Financial Services Committee, today introduced the Growing Deposit Insurance for the Future Act, legislation to ensure that federal deposit insurance keeps pace with inflation so Americans' checking and savings accounts receive the same insurance coverage over time. The bill updates the inflation adjustment in the Federal Deposit Insurance Act so that deposit insurance coverage automatically grows with inflation going forward.

"Deposit insurance is one of the most basic protections Americans rely on when they put their money in the bank," said Rep. Meuser. "Families and workers saw their bank deposit insurance erode 24% under the Biden Administration, reducing the protection on their savings. This bill makes sure the coverage Americans count on today keeps its value in the future."

What deposit insurance is - and why it matters

Federal deposit insurance protects the money Americans keep in their bank and credit union accounts, including checking accounts, savings accounts, and certificates of deposit. If a bank fails, deposit insurance guarantees that customers will still have access to their money up to the coverage limit, which is currently $250,000 per depositor, per institution.

This protection is vital to everyday Americans. It allows families to safely keep their paychecks, retirement savings, and emergency funds in the bank without worrying about losing them if a financial institution runs into trouble. Deposit insurance is one of the key reasons Americans have confidence in the banking system.

Inflation has reduced the real value of deposit insurance

While the coverage limit is currently $250,000, the real value of that protection has been reduced by inflation. Since 2021, cumulative inflation has reached roughly 24 percent, meaning the current limit protects significantly less purchasing power than when it was last set.

In practical terms, Americans today have less real protection on their bank deposits than they did just a few years ago - even though the law still lists the same dollar amount.

Meuser explained, "Community banks regularly tell us their customers want stronger deposit insurance protection, especially for families and small businesses that keep their savings in one place for decades. This bill gives Americans confidence that the coverage they have when they open an account will keep its value for a lifetime, not shrink over time because of inflation."

What the Growing Deposit Insurance for the Future Actdoes

The Growing Deposit Insurance for the Future Act ensures that deposit insurance will automatically adjust for inflation going forward so that coverage keeps its real value over time. The bill:

• Updates the inflation adjustment in the Federal Deposit Insurance Act.
• Ensures the deposit insurance limit - whether $250,000 or higher in the future - will always keep pace with inflation.
• Protects long-term savers so the coverage they have when they open an account remains meaningful years later.
• Provides certainty for families, retirees, and small businesses who rely on insured accounts.

"Deposit insurance is about trust," Meuser said. "Americans trust that when they put money in the bank, it will be there when they need it. This bill makes sure that trust is not eroded by inflation."

The legislation has been referred to the House Financial Services Committee.