H.R. 146 — Prohibition on IOER Act of 2025

This section establishes the short title of the Act as the “Prohibition on IOER Act of 2025.”

This section revises the Federal Reserve Act’s rules on interest paid on reserve balances by limiting earnings to balances of reserves required to be maintained by a depository institution under 12 U.S.C. 461(b)(2). It also renames the heading to refer to “required reserve balances” and adds an express prohibition stating that 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 in 12 U.S.C. 461(b)(12). (Thus, the provision clarifies that only required reserve balances, and not other reserve balances, may earn interest under this paragraph.)