Federal Reserve Regulatory Oversight Act | ChamberLight
Bills · HR 2418
IN COMMITTEE· 119TH CONGRESS
House BillHR 2418Finance and Financial Sector
Federal Reserve Regulatory Oversight Act
INTRO MAR 27· LAST ACTION MAR 27
READING
3MIN
COSPONSORS
1
READER REACTIONS0 TOTAL
NO VOTES YET · BE THE FIRST
Introduced only
LEGISLATIVE PROGRESS
STEP 2 / 8
Introduced
In Committee
Reported
Passed House
Passed Senate
Conference
To President
Became Law
WHAT THE BILL DOES
AI-written
Currently, the Federal Reserve largely funds its regulatory and administrative operations from its own income, giving it a degree of financial independence from Congress in these areas. This bill seeks to change that by requiring Congress to approve the budget for these specific functions annually.
If this bill becomes law, voters should care because it could shift power dynamics between the legislative branch and the independent central bank. It could increase congressional influence over how banks are supervised and regulated, potentially leading to different priorities or levels of funding for these critical functions. This could impact financial stability, the competitiveness of supervised institutions, and the overall effectiveness of bank oversight, depending on how Congress chooses to appropriate funds each year. If it doesn't pass, the Fed's current funding structure for these non-monetary functions would remain unchanged.
KEY PROVISIONS
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PROVISION 01
Requires Congress to appropriate funds for the Federal Reserve's non-monetary policy related administrative costs each year.
This significantly changes how the Fed funds its regulatory and administrative work, bringing it under direct congressional budgetary control.
PROVISION 02
Mandates the Federal Reserve to collect fees and assessments from supervised entities to recover the costs of these congressional appropriations.
This ensures that the costs of the Fed's regulatory oversight are recouped by the government, potentially affecting the financial burden on regulated institutions.
PROVISION 03
Defines "non-monetary policy related administrative costs" to include direct operating expenses for supervising and regulating entities, and related support and overhead.
This clarifies which specific functions of the Federal Reserve would be subject to the new appropriations requirement.
PROVISION 04
Establishes an effective date of October 1, 2025, for these changes.
This sets a clear timeline for when the new funding and oversight requirements will begin.
Currently, the Federal Reserve largely funds its regulatory and administrative operations from its own income, giving it a degree of financial independence from Congress in these areas. This bill seeks to change that by requiring Congress to approve the budget for these specific functions annually.
If this bill becomes law, voters should care because it could shift power dynamics between the legislative branch and the independent central bank. It could increase congressional influence over how banks are supervised and regulated, potentially leading to different priorities or levels of funding for these critical functions. This could impact financial stability, the competitiveness of supervised institutions, and the overall effectiveness of bank oversight, depending on how Congress chooses to appropriate funds each year. If it doesn't pass, the Fed's current funding structure for these non-monetary functions would remain unchanged.
KEY PROVISIONS
AI-extracted
high
Requires Congress to appropriate funds for the Federal Reserve's non-monetary policy related administrative costs each year.
This significantly changes how the Fed funds its regulatory and administrative work, bringing it under direct congressional budgetary control.
med
Mandates the Federal Reserve to collect fees and assessments from supervised entities to recover the costs of these congressional appropriations.
This ensures that the costs of the Fed's regulatory oversight are recouped by the government, potentially affecting the financial burden on regulated institutions.
high
Defines "non-monetary policy related administrative costs" to include direct operating expenses for supervising and regulating entities, and related support and overhead.
This clarifies which specific functions of the Federal Reserve would be subject to the new appropriations requirement.
low
Establishes an effective date of October 1, 2025, for these changes.
This sets a clear timeline for when the new funding and oversight requirements will begin.
Amendments made by this section shall apply with respect to expenses paid and fees collected.
GLOSSARY
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Federal Reserve Act
The law that created and governs the Federal Reserve System, establishing its powers and responsibilities.
Board of Governors of the Federal Reserve System
The main governing body of the Federal Reserve, responsible for overseeing the twelve Federal Reserve Banks and helping to implement monetary policy.
Appropriations process
The constitutional process by which Congress allocates specific amounts of government money for specific purposes each year.
Monetary policy
Actions taken by the central bank, like the Federal Reserve, to influence the availability and cost of money and credit to help promote national economic goals.
Non-monetary policy related administrative costs
The expenses incurred by the Federal Reserve for activities not directly related to controlling the money supply, such as supervising and regulating banks, and associated support functions.
Offsetting collections
Money collected by a government agency (like fees or assessments) that is then used to reduce the amount of the agency's net appropriation, effectively reimbursing the government for its costs.
Federal Reserve Banks
ACTION TIMELINE
2 EVENTS
MAR 27, 25
Introduced in House
INTROREFERRAL
MAR 27, 25
Referred to the House Committee on Financial Services.
The 12 regional banks that, along with the Board of Governors, make up the Federal Reserve System, carrying out duties such as supervising banks and providing financial services.
