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

This legislation proposes ending the practice of the Federal Reserve paying interest on the cash reserves that commercial banks keep on deposit. Currently, the Fed pays these institutions to hold excess money at the central bank, a mechanism used to influence market interest rates and manage the money supply. By eliminating these interest payments, the bill aims to discourage banks from parking their capital with the Fed and instead encourage them to circulate that money into the private economy through business loans and consumer credit. Proponents argue this could stimulate economic growth and increase liquidity, while critics warn it could make it more difficult for the Federal Reserve to effectively control inflation or stabilize the national banking system during periods of financial volatility.