Bill > HR2418

This bill introduces a new requirement for the Federal Reserve's non-monetary policy administrative costs to be subject to the congressional appropriations process, meaning these expenses would now need explicit approval through annual budget legislation. Specifically, the bill requires the Federal Reserve Board and Federal Reserve banks to collect assessments and fees that recover the government's annual appropriation costs, and they can only incur expenses for non-monetary policy administrative activities through a congressional appropriations act. The bill carefully defines "non-monetary policy related administrative costs" to include direct operating expenses like supervising and regulating financial institutions, conducting examinations and stress tests, staff training, research and analysis, and related support and overhead expenses. The bill provides a clear definition of monetary policy as a strategy for creating a reliable exchange medium that supports economic resource employment, and distinguishes these administrative costs from monetary policy activities. These new requirements would take effect on October 1, 2025, giving the Federal Reserve time to adapt to the new funding mechanism. The primary goal appears to be increasing congressional oversight of the Federal Reserve's administrative spending by bringing these costs into the standard budgetary review process.

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https://www.congress.gov/bill/119th-congress/house-bill/2418/all-info