Bill Summary

       H.R. 2478 would allow certain investment companies and
     their agents to postpone payments for the redemption of
     securities for up to 15 business days when they suspect the
     request of such action is the result of the exploitation of
     one or more people who are age 65 or older or who have
     impairments that keep them from protecting their own
     interests.
       H.R. 2478 also would require the Securities and Exchange
     Commission (SEC) to report to the Congress within one year on
     regulatory and legislative policies that could mitigate the
     financial exploitation of such people. The bill would direct
     the Commodity Futures Trading Commission (CFTC), Consumer
     Financial Protection Bureau (CFPB), Federal Deposit Insurance
     Corporation (FDIC), Office of the Comptroller of the Currency
     (OCC), and Federal Reserve to consult with the SEC on the
     report.

                         Estimated Federal Cost

       The costs of the legislation fall within budget function
     370 (commerce and housing credit).

                           Basis of Estimate

       CBO assumes that the bill will be enacted in fiscal year
     2026. The costs for the federal agencies other than the SEC
     would be minimal. Using information from the agencies, CBO
     expects that each one would need less than one full-time-
     equivalent employee to assist the SEC with its report.

                      Direct Spending and Revenues

       CBO estimates that enacting H.R. 2478 would decrease
     revenues and increase direct spending, on net, by less than
     $500,000 over the 2026-2036 period; the net effect on the
     deficit would be insignificant.
       The operating costs for the FDIC and OCC are classified in
     the budget as direct spending. Because the OCC is authorized
     to collect fees from regulated institutions to cover
     administrative expenses, CBO estimates that enacting H.R.
     2478 would increase net direct spending by an insignificant
     amount over the 2026-2036 period.
       Under current law, the CFPB is permanently authorized to
     spend amounts transferred from the combined earnings of the
     Federal Reserve in an amount necessary to carry out its
     responsibilities, subject to a statutory cap that was most
     recently lowered by the 2025 reconciliation act. That
     spending is classified as direct spending in the budget.
     Because CBO expects that, under current law, the CFPB will
     spend all transferred funds up to its statutory cap in the
     years that the combined earnings of the Federal Reserve are
     sufficient to fund the CFPB, we do not attribute any increase
     in direct spending for the CFPB to this bill. Any spending by
     the CFPB to implement the bill would necessitate a decrease
     in spending for other activities of the agency.
       Costs incurred by the Federal Reserve reduce remittances to
     the Treasury, which are recorded in the budget as revenues.
     CBO estimates that enacting H.R. 2478 would decrease revenues
     by an insignificant amount over the 2026-2036 period.

                   Spending Subject to Appropriation

       In June 2018, the SEC announced that it would not pursue
     enforcement actions against investment companies or their
     agents that delay the disbursement of redeemed securities
     based on the belief that the request was the result of the
     financial exploitation of a person who is age 65 or older or
     is an impaired adult.
       On that basis and using information from the commission
     about the cost of similar reports, CBO estimates that
     implementing H.R. 2478 would cost the SEC $2 million over the
     2026-2031 period. CBO expects that the SEC would need five
     employees, at an average cost of $340,000 per employee, for
     one year to complete the study and report to the Congress.
     Because the SEC is authorized to collect fees each year to
     offset its annual appropriation, CBO expects that the net
     effect on the commission's discretionary spending over the
     2026-2031 period would be negligible, assuming appropriation
     actions consistent with that authority.
       CBO estimates that implementing the bill would increase
     costs by an insignificant amount for the CFTC, whose
     administrative costs are subject to appropriation.

                      Pay-As-You-Go Considerations

       The Statutory Pay-As-You-Go Act of 2010 establishes budget-
     reporting and enforcement procedures for legislation
     affecting direct spending or revenues. CBO estimates that
     enacting the bill would increase direct spending and decrease
     revenues by less than $500,000 over the 2026-2036 period; the
     effect on the deficit would not be significant.

         Increase in Long-Term Net Direct Spending and Deficits

       CBO estimates that enacting H.R. 2478 would not increase
     net direct spending or on-budget deficits in any of the four
     consecutive 10-year periods beginning in 2037.

                                Mandates

       If federal financial regulators increase fees to offset the
     costs associated with implementing the bill, H.R. 2478 would
     increase the cost of an existing mandate on private entities
     required to pay those assessments. CBO estimates that the
     incremental cost of the mandate would be small and would fall
     well below the annual threshold for private-sector mandates
     established in the Unfunded Mandates Reform Act (UMRA) ($214
     million in 2026, adjusted annually for inflation).
       H.R. 2478 contains no intergovernmental mandates as defined
     in UMRA.
       Estimate Prepared By: Federal Costs: Sean Christensen,
     Revenues: Nathaniel Frentz, Mandates: Rachel Austin.
       Estimate Reviewed By: Justin Humphrey, Chief, Finance,
     Housing, and Education Cost Estimates Unit; Kathleen
     FitzGerald, Chief, Public and Private Mandates Unit; H.
     Samuel Papenfuss, Deputy Director of Budget Analysis.
       Estimate Approved By: Mark P. Hoeller, for Phillip L.
     Swagel, Director, Congressional Budget Office.

  Mr. HILL of Arkansas. Mr. Speaker, I rise today in full support of
our distinguished chair of our Subcommittee on Capital Markets, Mrs.
Wagner from Missouri, and her bill that she presents today, the
Financial Exploitation Prevention Act of 2025.
  Every day, bad actors use fraud, scams, and deception to target the
most vulnerable in our society who may be less able to recognize or
respond immediately and timely to some form of financial abuse.

  Literally, over the last few years, I have been inundated every time
I am in my district and community, like my hometown of Little Rock. I
hear directly from citizens, the elderly, customers, bankers, small
business owners, and all consumers who are grappling with check fraud,
wire fraud, and increasingly sophisticated digital scams.
  My own family has been victim of check fraud more than one time. I am
grateful to the bank that helped identify that with their system.
  Mr. Speaker, our financial institutions, our broker-dealers, and our
investment companies are all saddled with being in the first line of
defense against these schemes that are coming in every shape and form,
electronically, by paper, and over the telephone, that are targeting
the customers and clients of our financial services companies.
  These banks, broker-dealers, and investment companies are uniquely
positioned to identify suspicious transactions and unusual account
activity. That is the whole mission. We have given those authorities,
and they have invested billions in surveillance technology to try to do
that.
  When warning signs emerge, firms should have the ability to take
reasonable steps to put their customers first and to protect those
customers from potential harm.
  Chair Wagner's bill, H.R. 2478, which has strong bipartisan support
and cosponsorship, strengthens those exact protections by providing
financial institutions and other financial professionals and investment
companies with the legal certainty needed to temporarily delay
transactions when financial exploitation or abuse is suspected.
  This legislation is part of the Financial Services Committee's
broader effort to combat financial fraud and scams plaguing our
citizens, our neighbors, particularly seniors, and other vulnerable
Americans.
  By creating a safe harbor for delaying suspicious transactions and
reporting concerns to the appropriate authorities, this bill helps
prevent devastating financial losses before they occur.