SAMDT 3761 — To prohibit earnings on balances maintained at a Federal Reserve bank by or on behalf of a depository institution.

AMENDS

AMENDMENT PROGRESS

STEP 3 OF 3

Proposed

Considered

Disposed

Proposed
Considered
Disposed

DISPOSITION

FAILED

OCT 9, 2025

“Amendment SA 3761, under the order of 10/9/2025, not having achieved 60 votes in the affirmative, not agreed to in Senate by Yea-Nay Vote. 14 - 83. Record Vote Number: 562.”

what this changes

This amendment sought to stop the Federal Reserve from paying interest to banks on the cash they are required to keep in reserve. Because the Senate voted against it, the current system where banks earn interest on those balances will remain unchanged.

WHY IT MATTERS

Paying interest on reserves is a primary tool the Federal Reserve uses to control inflation and manage interest rates for the entire country. Eliminating these payments would have significantly altered how the U.S. central bank manages the economy and would have removed a source of revenue for commercial banks.

WHO IS AFFECTED

This would have most directly affected commercial banks and credit unions, as well as the Federal Reserve's ability to influence the interest rates consumers pay on loans.

AMENDS

S 2296PASSED SENATE

National Defense Authorization Act for Fiscal Year 2026

OTHER AMENDMENTS TO THIS BILL

KEY POINTS

low

Elimination of Bank Interest

Banks currently earn interest on the money they park at the Fed; this amendment would have ended those payments entirely.

low

Impact on Monetary Policy

The Fed uses these interest rates to encourage or discourage banks from lending, which helps control the overall speed of the economy.

low

Federal Revenue

Proponents of such measures often argue that the money saved by not paying banks could instead be returned to the U.S. Treasury.

GLOSSARY

Depository Institution: A financial organization, such as a bank or credit union, that is legally allowed to accept monetary deposits from customers.
Federal Reserve: The central bank of the United States, which regulates banks and manages the nation's monetary policy.

Official sources

SAMDT 3761 on Congress.gov

This analysis used: Amendment purpose · Latest action · Amended bill: summary

ACTION TIMELINE

7 EVENTS

OCT 9, 25

Amendment SA 3761, under the order of 10/9/2025, not having achieved 60 votes in the affirmative, not agreed to in Senate by Yea-Nay Vote. 14 - 83. Record Vote Number: 562.

FLOOR

OCT 9, 25

Amendment SA 3761 proposed by Senator Paul to Amendment SA 3748. (consideration: CR S7062-7063)

FLOOR

OCT 9, 25

Senate amendment proposed (on the floor): Amendment SA 3761 proposed by Senator Paul to Amendment SA 3748.

FLOOR

OCT 9, 25

Senate amendment not agreed to: Amendment SA 3761, under the order of 10/9/2025, not having achieved 60 votes in the affirmative, not agreed to in Senate by Yea-Nay Vote. 14 - 83. Record Vote Number: 562.

FLOOR

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To prohibit earnings on balances maintained at a Federal Reserve bank by or on behalf of a depository institution.

AMENDS

SUMMARY

KEY POINTS

SPONSORSHIP

ACTION TIMELINE

AMENDMENT INFO

READER REACTIONS

Discussion

To prohibit earnings on balances maintained at a Federal Reserve bank by or on behalf of a depository institution.

AMENDS

AMENDMENT PROGRESS