U.S. Rep. Dan Meuser, R-Dallas, a member of the House Financial Services Committee, recently introduced legislation to ensure that federal deposit insurance keeps pace with inflation so Americans’ checking and savings accounts receive the same insurance coverage over time.

According to a news release from the congressman’s office, the bill updates the inflation adjustment in the Federal Deposit Insurance Act so that deposit insurance coverage automatically grows with inflation going forward.

“Deposit insurance is one of the most basic protections Americans rely on when they put their money in the bank,” said Meuser, according to the news release. “Families and workers saw their bank deposit insurance erode 24% under the Biden Administration, reducing the protection on their savings. This bill makes sure the coverage Americans count on today keeps its value in the future.”

Federal deposit insurance, the news release said, protects the money Americans keep in their bank and credit union accounts, including checking accounts, savings accounts, and certificates of deposit. If a bank fails, deposit insurance guarantees that customers will still have access to their money up to the coverage limit, which is currently $250,000 per depositor, per institution.

“This protection is vital to everyday Americans,” the news release said. “It allows families to safely keep their paychecks, retirement savings, and emergency funds in the bank without worrying about losing them if a financial institution runs into trouble. Deposit insurance is one of the key reasons Americans have confidence in the banking system.”

While the coverage limit is currently $250,000, the real value of that protection has been reduced by inflation. Since 2021, cumulative inflation has reached roughly 24 percent, meaning the current limit protects significantly less purchasing power than when it was last set.

“Community banks regularly tell us their customers want stronger deposit insurance protection, especially for families and small businesses that keep their savings in one place for decades,” Meuser said, according to the news release. “This bill gives Americans confidence that the coverage they have when they open an account will keep its value for a lifetime, not shrink over time because of inflation.”

The legislation has been referred to the House Financial Services Committee.