Project 2025 does not explicitly propose eliminating the FDIC; rather, the document suggests the corporation merge with other federal financial agencies. A 2017 report by The Heritage Foundation, which put forward the Project 2025 initiative, did suggest that, eventually, "government-provided deposit insurance should be phased out fully."

Posts claiming that Project 2025 -- the political initiative put forward by The Heritage Foundation, a conservative think tank -- would eliminate the Federal Deposit Insurance Corporation (FDIC) have been circulating on social media throughout 2024.

However, the more than 800-page Project 2025 blueprint document does not explicitly call for the elimination of the FDIC. Rather, it outlines a plan (on page 705) to merge the corporation with other federal financial institutions and to create new charters for financial firms that would "replace government regulation with competition and market discipline." The relevant section of the document reads as follows:

Merging Functions. The new Administration should establish a more streamlined bank and supervision by supporting legislation to merge the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the National Credit Union Administration, and the Federal Reserve's non-monetary supervisory and regulatory functions.

U.S. banking law remains stuck in the 1930s regarding which functions financial companies should perform. It was never a good idea either to restrict banks to taking deposits and making loans or to prevent investment banks from taking deposits. Doing so makes markets less stable. All financial intermediaries function by pooling the financial resources of those who want to save and funneling them to others that are willing and able to pay for additional funds. This underlying principle should guide U.S. financial laws.

Policymakers should create new charters for financial firms that eliminate activity restrictions and reduce regulations in return for straightforward higher equity or risk-retention standards. Ultimately, these charters would replace government regulation with competition and market discipline, thereby lowering the risk of future financial crises and improving the ability of individuals to create wealth.

Snopes reached out to a Project 2025 spokesperson seeking comment and will update this story if we receive a response.

In addition, the initiative does not outline how a merging of these agencies would affect federal deposit insurance. However, in a 2017 report published by The Heritage Foundation, author Mark Calabria -- who was the former director of the Federal Housing Finance Agency -- proposed that Congress reduce federal deposit insurance coverage to $40,000 and that, "ultimately, government-provided deposit insurance should be phased out fully."

In sum, while Project 2025 does not explicitly propose eliminating the FDIC, it does propose merging the FDIC with other federal banking agencies, which is why we have rated this claim as a mixture of true and false information. In a different report, The Heritage Foundation has proposed the eventual phasing out of federal deposit insurance altogether.