II 

117TH CONGRESS 

2D SESSION S. 4946 

To amend the Expedited Funds Availability Act to require that funds 

deposited be available for withdrawal in real-time, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

SEPTEMBER 22, 2022 

Mr. VAN HOLLEN introduced the following bill; which was read twice and 

referred to the Committee on Banking, Housing, and Urban Affairs 

A BILL 

To amend the Expedited Funds Availability Act to require 

that funds deposited be available for withdrawal in realtime, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Payments Moderniza5 tion Act of 2022’’. 

6 SEC. 2. FINDINGS AND PURPOSES. 

7 (a) FINDINGS.—Congress finds the following: 

8 (1) Families in the United States spend billions 

9 of dollars in overdraft fees in part because they are 


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1 waiting for checks to clear over a weekend or holi2 day. 

3 (2) The inefficient payment system in the 

4 United States drives families, especially those living 

5 paycheck to paycheck, to use high-cost financial 

6 services to access funds more rapidly. 

7 (3) A faster payment system would provide peo8 ple of the United States immediate access to funds 

9 and relief for those who overdraw their accounts be10 cause their deposits are not available in real-time, 

11 helping families potentially save billions of dollars 

12 each year. 

13 (4) The United States lags behind other coun14 tries in the speed and efficiency of its payment sys15 tem. 

16 (5) Central banks around the world have al17 ready implemented real-time payment systems, in18 cluding in the United Kingdom, Australia, Mexico, 

19 Poland, Japan, and South Africa. 

20 (6) The Federal Reserve System was created by 

21 Congress on December 24, 1913, in response to the 

22 financial panic of 1907. 

23 (7) Since its beginning, the Federal Reserve 

24 System has played a crucial role in the payment sys25 tem of the United States. 


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1 (8) The role of the Federal Reserve System in 

2 providing payment services is— 

3 (A) to promote the integrity and efficiency 

4 of the payment mechanism; and 

5 (B) to ensure the provision of payment 

6 services to all depository institutions on an eq7 uitable basis and in an atmosphere of competi8 tive fairness. 

9 (9) The Monetary Control Act of 1980 (title I 

10 of Public Law 96–221; 94 Stat. 132) provided the 

11 Board of Governors of the Federal Reserve System 

12 with the authority to oversee the payment system in 

13 the United States. 

14 (10) The Expedited Funds Availability Act (12 

15 U.S.C. 4001 et seq.), enacted on August 10, 1987, 

16 provided the Board of Governors of the Federal Re17 serve System with full authority to regulate all as18 pects of the payment system, including the receipt, 

19 payment, collection, clearing of checks, and related 

20 functions of the payment system pertaining to 

21 checks. 

22 (11) In a July 2018 report on financial tech23 nology, the Department of the Treasury acknowl24 edged the important role of the Board of Governors 

25 of the Federal Reserve System in bringing real-time 


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1 payment settlement services to the United States 

2 when the Department recommended the Board of 

3 Governors work to facilitate a faster retail payment 

4 system, in particular, for smaller financial institu5 tions such as community banks and credit unions, 

6 noting that such institutions should also have the 

7 ability to access the most innovative technologies 

8 and payment services. 

9 (12) The authorities described in paragraphs 

10 (9) and (10) are more critical than ever given how 

11 the financial services sector has been defined as a 

12 vital component of critical infrastructure in the 

13 United States. 

14 (13) The role of the Board of Governors of the 

15 Federal Reserve System in the financial services sec16 tor will ensure the resiliency of the payment system 

17 in the United States. 

18 (14) The Board of Governors of the Federal 

19 Reserve System should develop a real-time interbank 

20 payment system to ensure that— 

21 (A) consumers are prioritized; 

22 (B) consumers and small businesses are 

23 protected from fraud and errors, including with 

24 respect to a payment initiated by a consumer or 

25 small business; 


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1 (C) the payment system is open to in2 creased competition; and 

3 (D) outsized entities do not monopolize the 

4 financial infrastructure of the United States. 

5 (b) PURPOSES.—The purposes of this Act are— 

6 (1) to ensure that the United States has a safe, 

7 fast, efficient, equitable, and fair payment system; 

8 (2) to clarify that the Board of Governors of 

9 the Federal Reserve System has the existing author10 ity to build a real-time payment system; and 

11 (3) to make certain that the Board of Gov12 ernors of the Federal Reserve System follows 

13 through on implementing the system described in 

14 paragraph (2). 

15 SEC. 3. DEFINITION. 

16 In this Act, the term ‘‘real-time’’ has the meaning 

17 given the term in section 602 of the Expedited Funds 

18 Availability Act (12 U.S.C. 4001), as amended by section 

19 4(a) of this Act. 

20 SEC. 4. REQUIREMENT THAT FUNDS DEPOSITED BE AVAIL21 ABLE FOR WITHDRAWAL IN REAL-TIME. 

22 (a) DEFINITIONS.— 

23 (1) IN GENERAL.—Section 602 of the Expe24 dited Funds Availability Act (12 U.S.C. 4001) is 

25 amended— 


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1 (A) by redesignating paragraphs (20) 

2 through (25) as paragraphs (21) through (26), 

3 respectively; and 

4 (B) by inserting after paragraph (19) the 

5 following: 

6 ‘‘(20) REAL-TIME.—The term ‘real-time’— 

7 ‘‘(A) means any time; and 

8 ‘‘(B) includes a Saturday, Sunday, and a 

9 legal holiday.’’. 

10 (2) TECHNICAL AND CONFORMING AMEND11 MENT.—Section 3 of the Check Clearing for the 

12 21st Century Act (12 U.S.C. 5002(2)(D)(iv)) is 

13 amended by striking ‘‘section 602(24)’’ and insert14 ing ‘‘section 602(25)’’. 

15 (b) EXPEDITED FUNDS AVAILABILITY SCHED16 ULES.—Section 603 of the Expedited Funds Availability 

17 Act (12 U.S.C. 4002) is amended— 

18 (1) in subsection (a)— 

19 (A) in the subsection heading, by striking 

20 ‘‘NEXT BUSINESS DAY’’ and inserting ‘‘REAL21 TIME’’; 

22 (B) in paragraph (1)— 

23 (i) by striking ‘‘Except as provided in 

24 subsection (e) and in section 604, in’’ and 

25 inserting ‘‘In’’; and 


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1 (ii) in the matter following subpara2 graph (B) by striking ‘‘not later than the 

3 business day after the business day on 

4 which’’ and inserting ‘‘in real-time when’’; 

5 and 

6 (C) in paragraph (2), in the matter pre7 ceding subparagraph (A), by striking ‘‘not later 

8 than the business day after the business day on 

9 which’’ and inserting ‘‘in real-time after’’; 

10 (2) by striking subsection (b) and inserting the 

11 following: 

12 ‘‘(b) PERMANENT SCHEDULE.—Funds deposited in 

13 an account at a depository institution by a check drawn 

14 on a local or nonlocal originating depository institution 

15 shall be available for withdrawal in real-time.’’; 

16 (3) by striking subsection (c); 

17 (4) by striking subsection (d); 

18 (5) by redesignating subsections (e) and (f) as 

19 subsections (c) and (d), respectively; 

20 (6) in subsection (c), as redesignated by para21 graph (5)— 

22 (A) in paragraph (1)— 

23 (i) in subparagraph (A)— 

24 (I) by striking ‘‘Not more than 4 

25 business days shall intervene between 


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1 the business day a’’ and inserting 

2 ‘‘A’’; 

3 (II) by inserting a comma after 

4 ‘‘subparagraph (B)’’; 

5 (III) by striking ‘‘is’’; and 

6 (IV) by striking ‘‘and the busi7 ness day on which funds from such 

8 deposit are available for withdrawal’’ 

9 and inserting ‘‘shall be available for 

10 withdrawal in real-time’’; and 

11 (ii) in subparagraph (B), in the sub12 paragraph heading, by striking ‘‘PARA13 GRAPH’’ and inserting ‘‘SUBPARAGRAPH’’; 

14 and 

15 (B) in paragraph (2)— 

16 (i) by striking ‘‘, (b), and (c)’’ and in17 serting ‘‘and (b)’’; and 

18 (ii) in the paragraph heading, by 

19 striking ‘‘TEMPORARY AND PERMANENT

20 SCHEDULES’’ and inserting ‘‘PERMANENT

21 SCHEDULE’’; and 

22 (7) in subsection (d)(2), as redesignated by 

23 paragraph (5), by striking ‘‘(c), or (e)’’ and insert24 ing ‘‘or (c)’’. 


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1 (c) SAFEGUARD EXCEPTIONS.—Section 604 of the 

2 Expedited Funds Availability Act (12 U.S.C. 4003) is 

3 amended— 

4 (1) in subsection (a)— 

5 (A) in paragraph (1)— 

6 (i) in the paragraph heading by strik7 ing ‘‘NEXT BUSINESS DAY’’ and inserting 

8 ‘‘REAL-TIME’’; and 

9 (ii) in the matter following subpara10 graph (D) by striking ‘‘on the business day 

11 after the business day on which such cash 

12 or funds are deposited or, in the case of a 

13 wire transfer, on the business day after the 

14 business day on which’’ and inserting ‘‘in 

15 real-time after such cash or funds are de16 posited or, in the case of a wire transfer, 

17 in real-time after’’; 

18 (B) in paragraph (2)— 

19 (i) by striking ‘‘, 603(c), or para20 graphs’’ and inserting ‘‘paragraph’’; and 

21 (ii) by striking ‘‘603(e)’’ and inserting 

22 ‘‘603(c)’’; and 

23 (C) by striking paragraph (3)(B) and in24 serting the following: 


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1 ‘‘(B) any such funds deposited in excess of 

2 such amount shall be available for withdrawal 

3 in real-time.’’; 

4 (2) in subsection (b), in the matter preceding 

5 paragraph (1), by striking ‘‘(c), or (e)’’ and insert6 ing ‘‘or (c)’’; 

7 (3) in subsection (c)(1), by striking ‘‘(c), and 

8 (e)’’ and inserting ‘‘and (c)’’; and 

9 (4) in subsection (d), by striking ‘‘(c), and (e)’’ 

10 and inserting ‘‘and (c)’’. 

11 (d) MISCELLANEOUS PROVISIONS.—Section 607 of 

12 the Expedited Funds Availability Act (12 U.S.C. 4006) 

13 is amended— 

14 (1) by striking subsections (a) and (b); and 

15 (2) by redesignating subsections (c) through (f) 

16 as subsections (a) through (d), respectively. 

17 (e) REGULATIONS AND REPORTS BY BOARD.—Sec18 tion 609 of the Expedited Funds Availability Act (12 

19 U.S.C. 4008) is amended— 

20 (1) by striking subsections (d) and (f); and 

21 (2) by redesignating subsection (e) as sub22 section (d). 

Æ 


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