ICBA Supports Bill to Strengthen Deposit Insurance While Minimizing Costs to Community Banks

Washington, D.C. (Oct. 10, 2025) — The Independent Community Bankers of America (ICBA) expressed support for legislation to strengthen the nation’s deposit insurance system while minimizing additional costs for community banks.

Introduced by Sens. Bill Hagerty (R-Tenn.) and Angela Alsobrooks (D-Md.), the Main Street Depositor Protection Act would provide expanded deposit insurance coverage of up to $10 million per depositor for noninterest-bearing transaction accounts. To control premium costs for community banks, the bill would provide that during a 10-year transition period, banks under $10 billion in assets are not required to pay any special assessment or increase in assessments to the FDIC to offset any impact on the Deposit Insurance Fund’s reserve ratio resulting from the additional insurance coverage.

“ICBA and the nation’s community bankers support the Main Street Depositor Protection Act to improve our nation’s successful deposit insurance system while minimizing costs for community banks,” ICBA President and CEO Rebeca Romero Rainey said. “Expanding deposit insurance coverage for noninterest-bearing transaction accounts while mitigating higher costs on locally based community banks will further strengthen our banking system. We thank Sens. Hagerty and Alsobrooks for working on behalf of community banks and the local communities they serve.”

In a letter to Sens. Hagerty and Alsobrooks, ICBA said these provisions of the Main Street Depositor Protection Act will promote balanced deposit insurance coverage across the banking industry, further strengthen the deposit insurance system, and better support small businesses that use transaction accounts for payroll and other recurring expenses.

About ICBA

The Independent Community Bankers of America® has one mission: to create and promote an environment where community banks flourish. We power the potential of the nation’s community banks through effective advocacy, education, and innovation.

As local and trusted sources of credit, America’s community banks leverage their relationship-based business model and innovative offerings to channel deposits into the neighborhoods they serve, creating jobs, fostering economic prosperity, and fueling their customers’ financial goals and dreams. For more information, visit ICBA’s website at icba.org.