119-s1648

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 1648 Introduced in Senate

    (IS) ]

<DOC>

119th CONGRESS
 1st Session
 S. 1648

 To limit the total assets of Federal reserve banks, and for other 
 purposes.

_______________________________________________________________________

 IN THE SENATE OF THE UNITED STATES

 May 7, 2025

 Mr. Scott of Florida introduced the following bill; which was read 
 twice and referred to the Committee on Banking, Housing, and Urban 
 Affairs

_______________________________________________________________________

 A BILL

 To limit the total assets of Federal reserve banks, 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 ``Right-size the Federal Reserve 
Act''.

SEC. 2. LIMITATION ON TOTAL ASSETS AND INTEREST PAYMENTS.

    (a) In General.--The Federal Reserve Act is amended--

    (1) in 

section 2B (12 U.S.C. 225b), by adding at the end 
 the following:
 ``
            (d) Additional Annual Report.--The Board and each Federal reserve 
bank shall submit to Congress, on an annual basis, a report on how many 
foreign-owned banks and financial institutions the Board or the Federal 
reserve banks have paid on interest for reserves or in the lending 
facilities of the Board.'';

    (2) in 

section 19

    (b) (12 U.S.C. 461

    (b) )--
        (A) in paragraph

    (2)
        (A) , by striking ``solely for 
 the purpose'' and all that follows through the period 
 at the end and inserting ``, which shall be not lower 
 than the reserve requirements in effect on March 25, 
 2020.''; and
        (B) in paragraph

    (12)
        (A) , by inserting ``that are 
 not in excess of the reserves required to be maintained 
 under this subsection'' after ``institution''; and

    (3) by adding at the end the following:

``

SEC. 33. LIMITATION ON TOTAL ASSETS.

 ``

    (a) In General.--The total aggregate assets of all Federal 
reserve banks shall be in an amount that is not more than 10 percent of 
the gross domestic product of the United States.
 ``

    (b) Effective Date.--Subsection

    (a) shall take effect on the date 
that is 10 years after the date of enactment of this section.''.

    (b) Elimination of Facility.--The Board of Governors of the Federal 
Reserve System--

    (1) shall, not later than 1 year after the date of 
 enactment of this Act, eliminate the Overnight Reserve 
 Repurchase Facility; and

    (2) may not create another facility similar to the facility 
 eliminated under paragraph

    (1) .
            (c) Report.--Not later than 1 year after the date of enactment of 
this Act, and every year thereafter, the Board of Governors of the 
Federal Reserve System shall submit to Congress a report on the plan 
and timeline of the Board for meeting the requirements under this 
section and the amendments made by this section.
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