September 10, 2025
WASHINGTON, DC – Today, the U.S. Senate Committee on Banking, Housing, and Urban Affairs hosted a hearing, “Evaluating Perspectives on Deposit Insurance Reform.” This hearing continued to push the momentum for a Deposit Insurance Proposal by Senator Angela Alsobrooks (D-Md.) and Senator Hagerty (R-Tenn.).
“Permanently extending deposit insurance to payroll accounts will protect small businesses, community banks, and the people they serve. I am proud to partner with Senator Hagerty in this commonsense bipartisan effort to build an economy Marylanders, small business owners, and all Americans can trust. I look forward to continuing to build broad bipartisan support to get this done. I want small businesses in Maryland and across the country to have security in the event of another Silicon Valley Bank crash. All small businesses that bank with smaller banks deserve the security larger businesses that bank at big banks receive,” said Senator Alsobrooks.
“Targeted deposit insurance reform is vital to strengthening the regional banks, community banks, and Main Street depositors who support local economies in Tennessee and across the nation,” said Senator Hagerty. “A stronger and well-balanced banking system will benefit every American. I look forward to expeditiously advancing this bipartisan proposal in the Banking Committee.”
WATCH SENATOR ALSOBROOKS’ REMARKS AT THE HEARING HERE
“A strong relationship between women business owners and their financial institutions is vital to helping them grow and scale,” said Jen Earle, CEO of the National Association of Women Business Owners (NAWBO). “Equally important, in times of crisis, women business owners must be able to trust that no matter where they bank, they can make payroll. That’s why we support the legislation and applaud Senators Alsobrooks and Hagerty for working across party lines to help smaller banks and protect women business owners to keep them solvent even in the toughest times.”
“We want to thank Senators Angela Alsobrooks and Bill Hagerty for sponsoring this legislation which will strengthen and modernize the federal deposit insurance system,” said MD|DC Credit Union Association President/CEO John Bratsakis. “By increasing coverage for small business accounts at community banks and credit unions, this proposal will protect both the businesses and the financial institutions at the heart of our communities, ensuring their stability and continued vitality.”
Senators Alsobrooks and Hagerty filed their legislation as an amendment to the Fiscal Year 2026 National Defense Authorization Act (NDAA). Senators Alsobrooks and Hagerty are working with Banking Committee Chairman Tim Scott (R-S.C.) and Ranking Member Elizabeth Warren (D-Mass.) to advance the legislation through regular order, which began with today’s hearing. The Senators will file standalone legislation at a later date.
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