119-hr3390

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3390 Reported in House

    (RH) ]

<DOC>

 Union Calendar No. 191
119th CONGRESS
 1st Session
 H. R. 3390

 [Report No. 119-234]

 To amend the Federal Reserve Act to require the Board of Governors of 
 the Federal Reserve System to carry out a review of discount window 
 operations and to implement improvements to such operations, and for 
 other purposes.

_______________________________________________________________________

 IN THE HOUSE OF REPRESENTATIVES

 May 14, 2025

Ms. De La Cruz (for herself, Mr. Meuser, and Mr. Lucas) introduced the 
 following bill; which was referred to the Committee on Financial 
 Services

 September 4, 2025

 Reported with an amendment, committed to the Committee of the Whole 
 House on the State of the Union, and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
 in italic]
[For text of introduced bill, see copy of bill as introduced on May 14, 
 2025]

_______________________________________________________________________

 A BILL

 To amend the Federal Reserve Act to require the Board of Governors of 
 the Federal Reserve System to carry out a review of discount window 
 operations and to implement improvements to such operations, 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 ``Bringing the Discount Window into 
the 21st Century Act''.

SEC. 2. REVIEW OF DISCOUNT WINDOW OPERATIONS.

 

Section 10 of the Federal Reserve Act (12 U.S.C. 241 et seq.) is 
amended--

    (1) by redesignating paragraph

    (12) as paragraph

    (11) ; and

    (2) by adding at the end the following:
 ``

    (12) Review of discount window operations.--
 ``
        (A) In general.--Not later than 60 days after the 
 date of enactment of this paragraph, the Board of 
 Governors shall commence a review of the discount 
 window lending programs of the Federal reserve banks 
 (the `discount window'), and shall complete such review 
 not later than 240 days after the date of enactment of 
 this paragraph.
 ``
        (B) Contents.--The review required by 
 subparagraph
        (A) shall include a consideration of--
 ``
            (i) the effectiveness of the discount 
 window in providing liquidity to financial 
 institutions, including in times of financial 
 stress;
 ``
            (ii) whether the technology 
 infrastructure, including means of 
 communications, are sufficient to support the 
 timely provision of liquidity, including in 
 times of financial stress;
 ``
            (iii) the effectiveness of cybersecurity 
 measures implemented with respect to discount 
 window operations;
 ``
            (iv) the effectiveness of communications 
 between Federal reserve banks, financial 
 institutions, the Board of Governors, the 
 Federal Deposit Insurance Corporation, the 
 Comptroller of the Currency, and the Secretary 
 of the Treasury regarding discount window 
 operations;
 ``
            (v) the effectiveness of the Board of 
 Governors in providing oversight of the 
 discount window and in ensuring consistent 
 access to the discount window across the 
 Federal Reserve System;
 ``
            (vi) how the discount window interacts 
 with other providers of liquidity, including 
 the Federal Home Loan Banks, during both normal 
 operations and times of financial distress;
 ``
            (vii) the effectiveness of existing 
 discount window operating hours and whether 
 such hours should be expanded, taking into 
 account the interaction between discount window 
 operating hours and the operating hours of 
 payment systems of the Federal reserve banks, 
 such as the Fedwire Funds Service and FedNow 
 Service;
 ``
            (viii) the impact of mobile banking and 
 instant communications technology on depositor 
 behavior and liquidity risk posed to financial 
 institutions, including how the discount window 
 can--
 ``
            (I) help financial institutions 
 better respond to rapid liquidity 
 shortfalls; and
 ``
            (II) prevent broader financial 
 instability; and
 ``
            (ix) the effectiveness of the discount 
 window in light of the stigma associated with 
 its usage, ways to reduce such stigma, and ways 
 to improve access, operational efficiency, 
 transparency, and timeliness of the process for 
 financial institutions seeking advances, 
 including on the pricing and other terms of 
 such advances.
 ``
            (C) Remediation plan.--After the Board of 
 Governors completes the review required by subparagraph
        (A) , the Board of Governors, in consultation with the 
 Federal reserve banks, shall--
 ``
            (i) identify deficiencies with the 
 discount window and areas for enhancing 
 discount window effectiveness; and
 ``
            (ii) develop a written plan to remediate 
 the identified deficiencies and implement the 
 identified enhancements, which shall include--
 ``
            (I) an identification of actions 
 that will be taken to enhance discount 
 window effectiveness and remediate 
 identified deficiencies;
 ``
            (II) timelines and milestones for 
 implementing the plan and measures to 
 demonstrate how the implemented 
 improvements will be maintained on an 
 ongoing basis; and
 ``
            (III) measures of managing and 
 controlling any deficiencies and 
 current operations until the plan is 
 implemented in full.
 ``
            (D) Report to congress on review and plan.--
 ``
            (i) In general.--Not later than 365 days 
 after the date of enactment of this paragraph, 
 the Board of Governors shall submit a report to 
 the Committee on Financial Services of the 
 House of Representatives and the Committee on 
 Banking, Housing, and Urban Affairs of the 
 Senate containing--
 ``
            (I) the findings of the review 
 required by subparagraph
        (A) ; and
 ``
            (II) the remediation plan 
 required by subparagraph
            (C) .
 ``
            (ii) Consultation.--Before submitting the 
 report required by clause
            (i) , the Board of 
 Governors shall--
 ``
            (I) provide a copy of the 
 proposed report to the Comptroller of 
 the Currency, the Federal Deposit 
 Insurance Corporation, and the 
 Secretary of the Treasury; and
 ``
            (II) provide the Comptroller of 
 the Currency, the Federal Deposit 
 Insurance Corporation, and the 
 Secretary of the Treasury with an 
 opportunity to provide feedback on the 
 report.
 ``
            (iii) Testimony.--The Chairman of the 
 Board of Governors shall, at the semi-annual 
 hearing required under 

section 2B, testify with 
 respect to the contents of the report required 
 under this subparagraph.
 ``
        (E) Annual reports to congress.--
 ``
            (i) Reports by the board.--The Board of 
 Governors shall submit an annual report to the 
 Committee on Financial Services of the House of 
 Representatives and the Committee on Banking, 
 Housing, and Urban Affairs of the Senate 
 containing a review of the effectiveness of 
 discount window operations and a progress 
 report on the actions taken to implement the 
 identified enhancements described in 
 subparagraph
            (C) .
 ``
            (ii) Reports by the inspector general.--
 The Inspector General of the Board of Governors 
 of the Federal Reserve System and the Bureau of 
 Consumer Financial Protection shall submit an 
 annual report to the Committee on Financial 
 Services of the House of Representatives and 
 the Committee on Banking, Housing, and Urban 
 Affairs of the Senate containing a report on 
 the progress of the Board of Governors in 
 implementing the remediation plan required by 
 subparagraph
            (C) .
 ``
        (F) Confidential report information.--Any report 
 required under this paragraph may contain a 
 confidential annex containing information that, if made 
 public, could--
 ``
            (i) impact monetary policy, financial 
 stability, or cybersecurity; or
 ``
            (ii) significantly endanger the financial 
 stability of any financial institution.
 ``
        (G) Repeal.--This paragraph shall be repealed on 
 the date on which the Board of Governors notifies the 
 Congress and publishes on a public website of the Board 
 of Governors that the remediation plan required under 
 subparagraph
            (C) has been fully implemented.''.
 Union Calendar No. 191

119th CONGRESS

 1st Session

 H. R. 3390

 [Report No. 119-234]

_______________________________________________________________________

 A BILL

 To amend the Federal Reserve Act to require the Board of Governors of 
 the Federal Reserve System to carry out a review of discount window 
 operations and to implement improvements to such operations, and for 
 other purposes.

_______________________________________________________________________

 September 4, 2025

 Reported with an amendment, committed to the Committee of the Whole 
 House on the State of the Union, and ordered to be printed