H.R. 9331 — STOP Payments Fraud Act of 2026

This section permits, rather than requires, the Federal Reserve Board to shorten funds availability schedules for certain checks. It also authorizes the Board and the Consumer Financial Protection Bureau Director to determine, based on material fraud losses to the Treasury or depository institutions, that Treasury checks and cashier’s, certified, teller’s, or depository checks must instead follow the availability schedule for local checks under subsection (b)(1) for up to one year, with a required report to Congress within 60 days of any such determination.

This section authorizes depository institutions to delay funds availability for checks suspected of fraud, with an initial hold of up to 10 days and an extended hold of up to 45 days under regulations prescribed by the Board jointly with the Director of the Bureau of Consumer Financial Protection. It expands the existing collectability exception to also cover new account provisions in paragraphs (1) and (3) of subsection (a).

This section extends the next-business-day availability exceptions for cash, wire transfers, and certain checks to any account for up to 60 days when the Board and the Director of the Bureau of Consumer Financial Protection identify circumstances of greater fraud risk by rule. It also authorizes depository institutions to impose an initial hold of up to 10 days and an extended hold of up to 45 days on wire transfers upon reasonable suspicion of fraud, requires notices and record retention, prohibits overdraft fees when required notice is not given, and permits institutions to communicate with each other about invoking exceptions.

This section requires the Comptroller General to study State laws on funds availability and fraud safeguards, including permitted hold periods; the extent to which depository institutions release funds on local and nonlocal checks before maximum hold periods expire; the length of bank investigations into check nonpayment; the appropriateness of time periods and amount limits under sections 603 and 604 as of June 30, 2026; and administrative and legislative options to mitigate payment fraud risk. It also requires a report on the findings to the Senate Committee on Banking, Housing, and Urban Affairs and the House Committee on Financial Services within nine months after the effective date of implementing rules.

This section requires the Board of Governors of the Federal Reserve System, jointly with the Director of the Bureau of Consumer Financial Protection, to adopt final rules implementing specified amendments no later than one year after enactment. It delays the effective date of those amendments until 60 days after the rules are adopted.