U.S. Congressman Andy Barr introduced the Emergency Transaction Account Guarantee (E-TAG) Act on Mar. 25, which would allow the U.S. Department of the Treasury to temporarily provide unlimited deposit insurance on transaction accounts during periods of severe financial stress.
The legislation is intended to give federal regulators a tool to stabilize the banking system and prevent bank runs in times of economic uncertainty. The proposal comes as policymakers seek ways to ensure confidence in banks during future crises.
According to Barr, “We need the American people to have the utmost confidence in our banking system, especially during times of crisis. The E-TAG Act gives Treasury the ability to act quickly in a crisis to guarantee the security of bank accounts, prevent bank runs, and stabilize financial institutions before a crisis spreads. This is a smart, targeted tool that strengthens the safety and soundness of our financial system and protects American workers, small businesses, and local banks.”
The bill would authorize the Treasury Secretary—working with the Federal Deposit Insurance Corporation (FDIC) and National Credit Union Administration (NCUA)—to invoke expanded deposit insurance coverage when needed for stability. A similar program was used during the Great Financial Crisis of 2008 and played a key role in maintaining public trust at that time.
Barr has represented Kentucky’s 6th district since replacing Ben Chandler in 2013 according to his official biography. He previously served in both Congress since 2013 and before that held office in Kentucky’s House of Representatives according to his full biography. Barr was born in Lexington, Kentucky in 1973 and continues living there at age 49 as reported by local news sources. He graduated from University of Virginia with a Bachelor’s degree before earning his law degree from University of Kentucky College of Law according to university records.
The E-TAG Act aims for quick regulatory response so businesses can continue making payroll even amid disruptions. Supporters say it could help protect local economies if another period like 2008 arises.
