Bringing the Discount Window into the 21st Century Act
This bill requires the Board of Governors of the Federal Reserve System to review and develop a remediation plan for its discount window lending program, which provides loans to depository institutions to support an institution’s security and liquidity.
The review must consider topics such as the sufficiency of the technology infrastructure, the effectiveness of the existing operating hours of the discount window, and how the discount window interacts with other liquidity providers during normal operations and in times of financial distress.
The remediation plan must address any identified deficiencies, establish timelines and milestones for implementation, and be approved by the board.
The bill requires annual reports to Congress regarding the plan.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3390 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 3390
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
_______________________________________________________________________
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;
``(iv) the effectiveness of communications
between Federal reserve banks regarding
discount window operations;
``(v) the effectiveness of the Board of
Governors in providing oversight of the
discount window;
``(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; and
``(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 Board of Governors and
Federal reserve banks, such as FedWire and
FedNow.
``(C) Public comment.--In carrying out the review
required by subparagraph (A), the Board of Governors
shall provide the public with an opportunity to comment
on the effectiveness of discount window operations and
to offer suggestions for improving operations.
``(D) Remediation plan.--After completing the
review required by subparagraph (A) and considering any
public comments received pursuant to subparagraph (C),
the Board of Governors shall develop, and approve by a
vote of the Board of Governors, a written plan to
remediate any identified deficiencies or areas for
enhancing effectiveness of the discount window, which
shall include--
``(i) an identification of actions that the
Board of Governors will take to remediate those
deficiencies;
``(ii) timelines and milestones for
implementing the plan and measures to
demonstrate how the Board of Governors will
maintain implemented improvements on an ongoing
basis; and
``(iii) measures of managing and
controlling deficiencies until the plan is
implemented in full.
``(E) 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, after approval by
a vote of the Board of Governors, 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 (D).
``(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
General of the United States and the
Inspector General of the Board of
Governors of the Federal Reserve System
and the Bureau of Consumer Financial
Protection; and
``(II) provide the Comptroller
General and Inspector General with an
opportunity to provide feedback on the
report.
``(iii) Testimony.--The Chairman of the
Board of Governors shall testify before the
Committee on Financial Services of the House of
Representatives and the Committee on Banking,
Housing, and Urban Affairs of the Senate with
respect to the contents of the report required
under this subparagraph.
``(F) 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.
``(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 (D).
``(G) Confidential report information.--Any report
required under this paragraph may contain a
confidential annex containing information that details
any cybersecurity deficiencies or any deficiencies
which, if made public, could cause financial
instability.''.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
Committee Consideration and Mark-up Session Held
Committee Consideration and Mark-up Session Held
Ordered to be Reported (Amended) by the Yeas and Nays: 48 - 1.
Reported (Amended) by the Committee on Financial Services. H. Rept. 119-234.
Reported (Amended) by the Committee on Financial Services. H. Rept. 119-234.
Placed on the Union Calendar, Calendar No. 191.
Mr. Hill (AR) moved to suspend the rules and pass the bill, as amended.
Considered under suspension of the rules. (consideration: CR H2076-2078; text: CR H2076-2077)
DEBATE - The House proceeded with forty minutes of debate on H.R. 3390.
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Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote.
On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote.
Motion to reconsider laid on the table Agreed to without objection.
Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.