Section 1 Short title
This Act may be cited as the “Prohibition on IOER Act of 2025”.
Prohibition on IOER Act of 2025
A BILL
To amend the Federal Reserve Act to prohibit Federal reserve banks from paying interest on excess reserves.
Sec. 2 Prohibition on payment of earnings on surplus reserves
Section 19(b)(12) of the Federal Reserve Act (12 U.S.C. 461(b)(12)) is amended—
in the heading, by inserting “required reserve” before “balances”;
in subparagraph (A), by inserting after “Balances” the following: “of reserves required to be maintained by a depository institution under paragraph (2) that are”;
by redesignating subparagraph (C) as subparagraph (D); and
by inserting after subparagraph (B) the following:
“(C) Prohibition on other earnings—A Federal reserve bank may not pay earnings on balances maintained at a Federal reserve bank by or on behalf of a depository institution except as provided under this paragraph.”