[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