I 

108TH CONGRESS 

1ST SESSION H. R. 2778

To abolish the Board of Governors of the Federal Reserve System and 

the Federal reserve banks, to repeal the Federal Reserve Act, and for 

other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 17, 2003

Mr. PAUL introduced the following bill; which was referred to the Committee 

on Financial Services 

A BILL

To abolish the Board of Governors of the Federal Reserve 

System and the Federal reserve banks, to repeal the 

Federal Reserve Act, 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 ‘‘Federal Reserve Board 

5 Abolition Act’’. 

6 SEC. 2. FEDERAL RESERVE BOARD ABOLISHED. 

7 (a) IN GENERAL.—Effective at the end of the 1-year 

8 period beginning on the date of the enactment of this Act, 
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1 the Board of Governors of the Federal Reserve System 

2 and each Federal reserve bank are hereby abolished. 

3 (b) REPEAL OF FEDERAL RESERVE ACT.—Effective 

4 at the end of the 1-year period beginning on the date of 

5 the enactment of this Act, the Federal Reserve Act is here6 by repealed. 

7 (c) DISPOSITION OF AFFAIRS.—

8 (1) MANAGEMENT DURING DISSOLUTION PE9 RIOD.—During the 1-year period referred to in sub10 section (a), the Chairman of the Board of Governors 

11 of the Federal Reserve System—

12 (A) shall, for the sole purpose of winding 

13 up the affairs of the Board of Governors of the 

14 Federal Reserve System and the Federal re15 serve banks—

16 (i) manage the employees of the 

17 Board and each such bank and provide for 

18 the payment of compensation and benefits 

19 of any such employee which accrue before 

20 the position of such employee is abolished; 

21 and 

22 (ii) manage the assets and liabilities 

23 of the Board and each such bank until 

24 such assets and liabilities are liquidated or 
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1 assumed by the Secretary of the Treasury 

2 in accordance with this subsection; and 

3 (B) may take such other action as may be 

4 necessary, subject to the approval of the Sec5 retary of the Treasury, to wind up the affairs 

6 of the Board and the Federal reserve banks. 

7 (2) LIQUIDATION OFASSETS.—

8 (A) IN GENERAL.—The Director of the Of9 fice of Management and Budget shall liquidate 

10 all assets of the Board and the Federal reserve 

11 banks in an orderly manner so as to achieve as 

12 expeditious a liquidation as may be practical 

13 while maximizing the return to the Treasury. 

14 (B) TRANSFER TO TREASURY.—After sat15 isfying all claims against the Board and any 

16 Federal reserve bank which are accepted by the 

17 Director of the Office of Management and 

18 Budget and redeeming the stock of such banks, 

19 the net proceeds of the liquidation under sub20 paragraph (A) shall be transferred to the Sec21 retary of the Treasury and deposited in the 

22 General Fund of the Treasury. 

23 (3) ASSUMPTION OFLIABILITIES.—All out24 standing liabilities of the Board of Governors of the 

25 Federal Reserve System and the Federal reserve 
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1 banks at the time such entities are abolished, includ2 ing any liability for retirement and other benefits for 

3 former officers and employees of the Board or any 

4 such bank in accordance with employee retirement 

5 and benefit programs of the Board and any such 

6 bank, shall become the liability of the Secretary of 

7 the Treasury and shall be paid from amounts depos8 ited in the general fund pursuant to paragraph (2) 

9 which are hereby appropriated for such purpose 

10 until all such liabilities are satisfied. 

11 (d) REPORT.—At the end of the 18-month period be12 ginning on the date of the enactment of this Act, the Sec13 retary of the Treasury and the Director of the Office of 

14 Management and Budget shall submit a joint report to 

15 the Congress containing a detailed description of the ac16 tions taken to implement this Act and any actions or 

17 issues relating to such implementation that remain 

18 uncompleted or unresolved as of the date of the report.

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