119-hr2418

[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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