Allows the FDIC to choose a bank failure resolution that costs the Deposit Insurance Fund more than the cheapest option when it finds the added risk is outweighed by limiting further concentration in the largest global banks.

Official title: Least Cost Exception Act

Next stop House floor: awaiting a vote

Timeline each lane is a chamber; dates pull from congress.gov actions

House

Introduced 10-DEC-2025

Referred 10-DEC-2025

Approved by committee 17-DEC-2025

Reported 02-FEB-2026

On the calendar 02-FEB-2026

Key points

Permits the FDIC, with the Federal Reserve after consulting the Treasury Secretary, to select a non-least-costly resolution if the added risks to the Deposit Insurance Fund are outweighed by benefits of limiting concentration in global systemically important banking organizations.
Requires the FDIC, within one year of enactment, to set by rule a case-by-case maximum allowable cost against the Deposit Insurance Fund's net worth.
Requires any buyer that takes over a failed bank's assets or deposits to pay the FDIC an assessment over a period of at least five years.
Requires the FDIC to report to the House Financial Services Committee and the Senate Banking Committee within 30 days of using the exception, comparing its cost with the least costly alternative.

AI-generated from the Reported in House text of 02-FEB-2026 · verify · report an error

Official CRS summary

Current. The Congressional Research Service's summary covers the bill's latest wording (Reported to House, 02-FEB-2026).

CRS is the Library of Congress's nonpartisan research office. Read it on congress.gov

Committee referrals (1)

Policy area

Finance and Financial Sector

Sponsor Mike Flood (R-NE) Cosponsors · 4

■ 2 R■ 2 D

2 Democrats

2 Republicans

congress.gov page Reported in House (02-FEB-2026) Introduced in House (10-DEC-2025)