I
119THCONGRESS
1
STSESSION 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
MARCH27, 2025
Mr. D
AVIDSON(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-mone-
tary 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 Representa-1
tives of the United States of America in Congress assembled, 2
SECTION 1. SHORT TITLE. 3
This Act may be cited as the ‘‘Federal Reserve Regu-4
latory Oversight Act’’. 5
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SEC. 2. BRINGING THE NON-MONETARY POLICY RELATED 1
FUNCTIONS OF THE BOARD OF GOVERNORS 2
OF THE FEDERAL RESERVE SYSTEM INTO 3
THE APPROPRIATIONS PROCESS. 4
(a) I
NGENERAL.—The Federal Reserve Act is 5
amended by inserting after section 11C the following: 6
‘‘SEC. 11D. APPROPRIATIONS REQUIREMENT FOR NON- 7
MONETARY POLICY RELATED ADMINISTRA-8
TIVE COSTS. 9
‘‘(a) A
PPROPRIATIONSREQUIREMENT.— 10
‘‘(1) R
ECOVERY OF COSTS OF ANNUAL APPRO -11
PRIATION.—The Board of Governors of the Federal 12
Reserve System and the Federal reserve banks shall 13
collect assessments and other fees, as provided under 14
this Act, that are designed to recover the costs to 15
the Government of the annual appropriation to the 16
Board of Governors of the Federal Reserve System 17
by Congress. The Board of Governors of the Federal 18
Reserve System and the Federal reserve banks may 19
only incur obligations or allow and pay expenses 20
with respect to non-monetary policy related adminis-21
trative costs pursuant to an appropriations Act. 22
‘‘(2) O
FFSETTING COLLECTIONS .—Assessments 23
and other fees described under paragraph (1) for 24
any fiscal year— 25
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‘‘(A) shall be deposited and credited as off-1
setting collections to the account providing ap-2
propriations to the Board of Governors of the 3
Federal Reserve System; and 4
‘‘(B) shall not be collected for any fiscal 5
year except to the extent provided in advance in 6
appropriation Acts. 7
‘‘(3) L
IMITATION.—This subsection shall only 8
apply to the non-monetary policy related administra-9
tive costs of the Board of Governors of the Federal 10
Reserve System. 11
‘‘(b) D
EFINITIONS.—For purposes of this section: 12
‘‘(1) M
ONETARY POLICY.—The term ‘monetary 13
policy’ means a strategy for producing a generally 14
acceptable exchange medium that supports the pro-15
ductive employment of economic resources by reli-16
ably serving as both a unit of account and store of 17
value. 18
‘‘(2) N
ON-MONETARY POLICY RELATED ADMIN -19
ISTRATIVE COSTS.—The term ‘non-monetary policy 20
related administrative costs’ means administrative 21
costs not related to the conduct of monetary policy, 22
and includes— 23
‘‘(A) direct operating expenses for super-24
vising and regulating entities supervised and 25
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regulated by the Board of Governors of the 1
Federal Reserve System, including conducting 2
examinations, conducting stress tests, commu-3
nicating with the entities regarding supervisory 4
matters and laws, and regulations; 5
‘‘(B) operating expenses for activities inte-6
gral to carrying out supervisory and regulatory 7
responsibilities, such as training staff in the su-8
pervisory function, research and analysis func-9
tions including library subscription services, and 10
collecting and processing regulatory reports 11
filed by supervised institutions; and 12
‘‘(C) support, overhead, and pension ex-13
penses related to the items described under sub-14
paragraphs (A) and (B).’’. 15
(b) E
FFECTIVEDATE.—The amendments made by 16
this section shall apply with respect to expenses paid and 17
fees collected on or after October 1, 2025. 18
Æ
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