Bill Details
HR.2418 - 119th Congress
Status
Latest action
2025-03-27 - Referred to the House Committee on Financial Services.
Introduced Date
2025-03-27
Policy Area
Finance and Financial Sector
Committees
View committees (1)
Sponsors
Cosponsors
View cosponsors (1)
8
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AI Summary This summary was generated by AI from the bill text. AI can get information wrong.
This bill would require Congress to approve spending for the Federal Reserve’s work that is not directly tied to setting monetary policy, such as bank supervision and other administrative tasks. In practice, it would move those parts of the Federal Reserve’s budget into the normal federal appropriations process, meaning the Fed could only spend money on those activities if Congress has approved it first. The bill also lets the Federal Reserve collect fees and assessments to help pay for those costs, but only within the limits set by Congress. It does not change the Fed’s ability to carry out monetary policy, such as actions related to interest rates or managing the money supply.
- The new budget rule would apply only to non-monetary policy work, not to monetary policy decisions.
- Covered costs include supervising and examining banks, running stress tests, handling regulatory reports, staff training, research, and related overhead and pension costs.
- Fees and assessments collected for these costs would go into the same account that Congress uses to fund the Federal Reserve Board, and they could only be collected if an appropriations law allows it in advance.
- The changes would begin to apply to expenses paid and fees collected on or after October 1, 2025.
Official Summaries
No summaries available
Current Full Text
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2418 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 2418
To amend the Federal Reserve Act to bring the non-monetary policy
related functions of the Board of Governors of the Federal Reserve
System into the appropriations process, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 27, 2025
Mr. Davidson (for himself and Mr. Donalds) introduced the following
bill; which was referred to the Committee on Financial Services
_______________________________________________________________________
A BILL
To amend the Federal Reserve Act to bring the non-monetary policy
related functions of the Board of Governors of the Federal Reserve
System into the appropriations process, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Federal Reserve Regulatory Oversight
Act''.
SEC. 2. BRINGING THE NON-MONETARY POLICY RELATED FUNCTIONS OF THE BOARD
OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM INTO THE
APPROPRIATIONS PROCESS.
(a) In General.--The Federal Reserve Act is amended by inserting
after section 11C the following:
``SEC. 11D. APPROPRIATIONS REQUIREMENT FOR NON-MONETARY POLICY RELATED
ADMINISTRATIVE COSTS.
``(a) Appropriations Requirement.--
``(1) Recovery of costs of annual appropriation.--The Board
of Governors of the Federal Reserve System and the Federal
reserve banks shall collect assessments and other fees, as
provided under this Act, that are designed to recover the costs
to the Government of the annual appropriation to the Board of
Governors of the Federal Reserve System by Congress. The Board
of Governors of the Federal Reserve System and the Federal
reserve banks may only incur obligations or allow and pay
expenses with respect to non-monetary policy related
administrative costs pursuant to an appropriations Act.
``(2) Offsetting collections.--Assessments and other fees
described under paragraph (1) for any fiscal year--
``(A) shall be deposited and credited as offsetting
collections to the account providing appropriations to
the Board of Governors of the Federal Reserve System;
and
``(B) shall not be collected for any fiscal year
except to the extent provided in advance in
appropriation Acts.
``(3) Limitation.--This subsection shall only apply to the
non-monetary policy related administrative costs of the Board
of Governors of the Federal Reserve System.
``(b) Definitions.--For purposes of this section:
``(1) Monetary policy.--The term `monetary policy' means a
strategy for producing a generally acceptable exchange medium
that supports the productive employment of economic resources
by reliably serving as both a unit of account and store of
value.
``(2) Non-monetary policy related administrative costs.--
The term `non-monetary policy related administrative costs'
means administrative costs not related to the conduct of
monetary policy, and includes--
``(A) direct operating expenses for supervising and
regulating entities supervised and regulated by the
Board of Governors of the Federal Reserve System,
including conducting examinations, conducting stress
tests, communicating with the entities regarding
supervisory matters and laws, and regulations;
``(B) operating expenses for activities integral to
carrying out supervisory and regulatory
responsibilities, such as training staff in the
supervisory function, research and analysis functions
including library subscription services, and collecting
and processing regulatory reports filed by supervised
institutions; and
``(C) support, overhead, and pension expenses
related to the items described under subparagraphs (A)
and (B).''.
(b) Effective Date.--The amendments made by this section shall
apply with respect to expenses paid and fees collected on or after
October 1, 2025.
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