I 

111TH CONGRESS 

2D SESSION H. R. 6550 

To create a full employment economy as a matter of national economic 

defense; to provide for public investment in capital infrastructure; to 

provide for reducing the cost of public investment; to retire public debt; 

to stabilize the Social Security retirement system; to restore the authority 

of Congress to create and regulate money, modernize and provide stability 

for the monetary system of the United States, retire public debt and 

reduce the cost of public investment, and for other public purposes. 

IN THE HOUSE OF REPRESENTATIVES 

DECEMBER 17, 2010 

Mr. KUCINICH introduced the following bill; which was referred to the 

Committee on Financial Services 

A BILL 

To create a full employment economy as a matter of national 

economic defense; to provide for public investment in 

capital infrastructure; to provide for reducing the cost 

of public investment; to retire public debt; to stabilize 

the Social Security retirement system; to restore the 

authority of Congress to create and regulate money, 

modernize and provide stability for the monetary system 

of the United States, retire public debt and reduce the 

cost of public investment, and for other public purposes. 

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


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘National Emergency 

3 Employment Defense Act of 2010’’. 

4 SEC. 2. FINDINGS; PURPOSES. 

5 (a) FINDINGS.—The Congress finds as follows: 

6 (1) Nearly 15,000,000 Americans are currently 

7 unemployed, another 12,000,000 estimated Ameri8 cans are underemployed, wages are stagnant and 

9 millions of Americans are being asked to take pay 

10 cuts. 

11 (2) Over 43,000,000 Americans live below the 

12 poverty line, 49,000,000 of Americans go to bed 

13 hungry at night, and an estimated 3,000,000 Ameri14 cans are homeless. 

15 (3) An all-time high of over 1,500,000 non16 business bankruptcies were filed through June, 

17 2010, and the small business failure rate in America 

18 recently hit 12 percent. 

19 (4) More than 2,000,000 homes have been lost 

20 to foreclosure and millions of homeowners are falling 

21 behind in their mortgage payments; the housing 

22 market in terms of construction and sales has un23 dergone an historic decline; and the declining value 

24 of housing means Americans’ largest single invest25 ment, the home, is no longer a safe harbor for savVerDate Mar 15 2010 02:23 Dec 20, 2010 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H6550.IH H6550

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1 ings, nest eggs, social mobility or the transfer of 

2 generational wealth. 

3 (5) Notwithstanding recent passage of the Pa4 tient Protection and Affordable Care Act, a 

5 privatized health care system has made quality 

6 health care beyond the reach of most Americans. 

7 (6) The cost of higher education has put higher 

8 academic attainment outside the reach of millions 

9 more young Americans, and the current generation 

10 of young Americans will not be able to attain the 

11 quality of life of their parents, reversing a long12 standing trend. 

13 (7) Retired Americans are losing confidence 

14 that employment levels will be sufficient to ensure 

15 Social Security will have resources to guarantee 100 

16 percent of the promised benefits. A mechanism is 

17 needed to assure retired American’s of Social Secu18 rity’s viability. 

19 (8) The American Institute of Architects has 

20 estimated that there are $3 trillion in unmet infra21 structure needs. Cities and States, urban and rural 

22 areas all have an urgent need to rebuild and repair 

23 roads, bridges, railroads, water systems, sewer sys24 tems and other infrastructure but lack the necessary 

25 funds, bond-issuing capacity and other needs which 


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1 has led to America’s infrastructure falling into dis2 repair. 

3 (9) The United States is not financially capable 

4 of capitalizing on the burgeoning demand for wind, 

5 solar and other renewable energy technologies which 

6 reduce the cost of energy and help protect the envi7 ronment, the continued use of non-renewable ener8 gies such as coal and oil create a national security 

9 crisis as well as long-term economic vulnerability. 

10 (10) The annual United States trade deficit is 

11 $380 billion, and the flow of jobs out of America has 

12 been accelerated by trade agreements which have not 

13 protected the rights of workers, the environment or 

14 human rights. 

15 (11) Tax cuts to top brackets cost the Federal 

16 Government in excess of $1 trillion, yet have failed 

17 to create significant numbers of new jobs. 

18 (12) The monetary policies of the Board of 

19 Governors of the Federal Reserve System have com20 pounded the economic crisis by failing to take deci21 sive action to move the economy forward, Wall 

22 Street—which was bailed out by the American peo23 ple—is not investing its rising assets in Main Street 

24 America, and individual investors are beginning to 

25 turn away from the stock market. 


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1 (13) Some banks, many of which received gov2 ernment bailouts, are not investing in small busi3 nesses, nor in the creation of jobs, the private sector 

4 is not creating jobs, and in fact most businesses are 

5 freezing their employment levels. 

6 (14) The country is stymied by competing 

7 forces: a desire to put people to work and an aver8 sion to borrowing money to create programs to do 

9 so. 

10 (15) Confidence in the United States’ economic 

11 leadership at home and around the world is waning, 

12 the value of our currency cannot be securely main13 tained, and no other path to economic recovery ex14 ists which will create the changes necessary to put 

15 people back to work, invest in rebuilding America’s 

16 infrastructure, i.e. highway, rail, airport, harbors, 

17 light rail, communication, shipping, water, sewer, 

18 education, and civil defense. 

19 (16) The aforementioned conditions require 

20 comprehensive action by the United States Congress 

21 to create full employment, invest in America and se22 cure our Nation’s long-term economic, social and po23 litical future; and that such action is within our 

24 Constitutional right and responsibility. 


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1 (17) The authority to create money is a sov2 ereign power vested in the Congress under Article I, 

3 Section 8 of the Constitution. 

4 (18) The enactment of the Federal Reserve Act 

5 in 1913 by Congress effectively delegated the sov6 ereign power to create money, to the Federal Re7 serve system and private financial industry. 

8 (19) This ceding of Constitutional power has 

9 contributed materially to a multitude of monetary 

10 and financial afflictions, including— 

11 (A) growing and unreasonable concentra12 tion of wealth; 

13 (B) unbridled expansion of national debt, 

14 both public and private; 

15 (C) excessive reliance on taxation of citi16 zens for raising public revenues; 

17 (D) inflation of the currency; 

18 (E) drastic increases in the cost of public 

19 infrastructure investments; 

20 (F) record levels of unemployment and 

21 underemployment; and 

22 (G) persistent erosion of the ability of Con23 gress to exercise its Constitutional responsibil24 ities to provide resources for the general welfare 

25 of all the American people. 


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1 (20) A debt-based monetary system, where 

2 money comes into existence primarily through pri3 vate bank lending, can neither create, nor sustain, a 

4 stable economic environment, but has proven to be 

5 a source of chronic financial instability and frequent 

6 crisis, as evidenced by the near collapse of the finan7 cial system in 2008. 

8 (21) Banks pyramided their value by spending 

9 money into existence, greatly inflating the value of 

10 bank holdings, inflating the value of their asset 

11 bases, enticing unknowing investors to participate in 

12 financing schemes like the bundling of subprime 

13 mortgages, and ultimately bringing undercapitalized 

14 banks and the entire financial system to the edge of 

15 ruin, creating circumstances where the taxpayers of 

16 the United States were called upon to save the 

17 banks from their own imprudent money-issuing 

18 practices, misspending and mis-investments. The 

19 banks’ ability to create money out of nothing ulti20 mately became the taxpayers’ liability, and raises a 

21 fundamental question about a practice of money cre22 ation which threatens the wealth of the American 

23 people. 


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1 (22) Abolishing private money creation can be 

2 achieved with minimal disruption to current banking 

3 operations, regulation, and supervision. 

4 (23) The creation of money by private financial 

5 institutions as interest-bearing debts should cease 

6 once and for all. 

7 (24) Reclaiming the power of the Federal Gov8 ernment to create money, and to spend or lend 

9 money into circulation as needed, eliminates the 

10 need to treat money as a Federal liability or to pay 

11 interest charges on the Nation’s money supply to fi12 nancial institutions; it also renders unnecessary the 

13 undue influence of private financial institutions over 

14 public policy. 

15 (25) Under the current Federal Reserve Sys16 tem, the persons responsible for the conduct of 

17 United States monetary policy have been unaccount18 able to the Congress and the Nation, have resisted 

19 auditing by the General Accounting Office, and have 

20 claimed exemptions from some Federal statutes, in21 cluding the Civil Rights Act of 1964, that apply to 

22 all agencies of the Federal Government. 

23 (26) The conduct of United States monetary 

24 policy by the Board of Governors of the Federal Re25 serve System, and specifically the failure of Board 


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1 members to safeguard the financial system against 

2 wholesale fraud and abuse of citizens, demonstrates 

3 the risks of maintaining a system wherein the power 

4 to create and regulate money has been delegated to 

5 private individuals who are unaccountable to the 

6 People of the United States in any way, even 

7 through their representatives in Congress. 

8 (27) The Board of Governors of the Federal 

9 Reserve System has acted unilaterally to create and 

10 spend $1.25 trillion for the purpose of acquiring 

11 mortgage-backed securities, in disregard for the 

12 Constitutional requirement that all Federal Govern13 ment spending originate in the House of Representa14 tives. 

15 (28) An examination of the historical record 

16 demonstrates that the exercise of control by the 

17 United States Government over the money system 

18 has provided greater moderation in the supply of 

19 money and promoting the general welfare, and has 

20 been indispensable in times of national emergency 

21 for generating resources required to support public 

22 investment, provide for national defense, and pro23 mote the general welfare, and is therefore superior 

24 to private control over the money system. 


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1 (29) As our money system is a key pillar in 

2 maintaining general economic welfare and as the 

3 Federal Reserve System and its private banking 

4 partners has consistently failed to promote or pre5 serve the general welfare, it is essential that Con6 gress, in the name of protecting the economic lives 

7 of the American people and the long-term security of 

8 our Nation, reassume the powers and responsibilities 

9 granted to it by the Constitution. 

10 (b) PURPOSES.—The purposes of this Act are as fol11 lows: 

12 (1) To create a full employment economy as a 

13 matter of national economic defense; to provide for 

14 public investment in capital infrastructure; to pro15 vide for reducing the cost of public investment; to 

16 retire public debt; to stabilize the Social Security re17 tirement system; to restore the authority of Con18 gress to create and regulate money, to modernize 

19 and provide stability for the monetary system of the 

20 United States, and for other public purposes. 

21 (2) To abolish the creation of money, or pur22 chasing power, by private persons through lending 

23 against deposits, by means of fractional reserve 

24 banking, or by any other means. 


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1 (3) To enable the Federal Government to invest 

2 or lend new money into circulation as authorized by 

3 Congress and to provide means for public investment 

4 in capital infrastructure. 

5 (4) To incorporate the Federal Reserve System 

6 into the Executive Branch under the United States 

7 Treasury, and to make other provisions for reorga8 nization of the Federal Reserve System. 

9 (5) To provide for an orderly transition. 

10 (6) To make other provisions necessary to ac11 complish the purposes of this Act. 

12 SEC. 3. DEFINITIONS. 

13 (a) IN GENERAL.—For purposes of this Act, the fol14 lowing definitions shall apply: 

15 (1) BUREAU.—The term ‘‘Bureau’’ means the 

16 Bureau of the Federal Reserve established under 

17 section 314 of title 31, United States Code, as added 

18 by section 303. 

19 (2) DEPOSIT.—The term ‘‘deposit’’— 

20 (A) has the meaning given such term in 

21 section 3(l) of the Federal Deposit Insurance 

22 Act); and 

23 (B) includes— 


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1 (i) a member account (as defined in 

2 section 101(5) of the Federal Credit Union 

3 Act) in a credit union; and 

4 (ii) any transaction account. 

5 (3) DEPOSITORY INSTITUTION.—The term ‘‘de6 pository institution’’— 

7 (A) has the same meaning as in section 3 

8 of the Federal Deposit Insurance Act; and 

9 (B) includes any credit union (as defined 

10 in section 101 of the Federal Credit Union 

11 Act). 

12 (4) INSTRUMENT OF INDEBTEDNESS OF THE

13 UNITED STATES; TREASURY INSTRUMENTS.—The 

14 terms ‘‘instrument of indebtedness of the United 

15 States’’ and ‘‘Treasury instrument’’ include any obli16 gation issued under subchapter I of chapter 31 of 

17 title 31, United States Code. 

18 (5) MEMBER BANK.—The term ‘‘member bank’’ 

19 has the same meaning as in the first section of the 

20 Federal Reserve Act. 

21 (6) MONEY.—The term ‘‘money’’ refers to 

22 United States Money, as established under title I. 

23 (7) MONETARY AUTHORITY.—The term ‘‘Mone24 tary Authority’’ means the Monetary Authority es25 tablished under section 302. 


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1 (8) SECRETARY.—The term ‘‘Secretary’’ means 

2 the Secretary of the Treasury. 

3 (9) STATE.—The term ‘‘State’’ has the same 

4 meaning as in section 3 of the Federal Deposit In5 surance Act. 

6 (10) EFFECTIVE DATE.—The term ‘‘effective 

7 date’’ means the date determined and published in 

8 the Federal Register by the Secretary, during the 

9 90-day period beginning on the date of the enact10 ment of this Act, that— 

11 (A) is not less than 1 year after such date 

12 of enactment and not more than 2 years after 

13 such date; and 

14 (B) is the date on which the designated 

15 provisions of this Act take effect. 

16 (b) TECHNICAL AND CONFORMING AMENDMENT TO

17 THE FDIA.—Section 3(l) of the Federal Deposit Insur18 ance Act (12 U.S.C. 1813(l)) is amended by adding at 

19 the end the following: 

20 ‘‘Such term does not include any amount on which any 

21 interest is paid or which is received or held by a bank 

22 or savings association pursuant to a loan agreement for 

23 a fixed term of time (as determined without regard to any 

24 designation on the agreement as a loan, certificate, or 

25 other particular instrument).’’. 


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1 SEC. 4. COORDINATION WITH OTHER LAW. 

2 (a) IN GENERAL.—This Act shall supersede any pro3 vision of Federal law in effect on the day before the date 

4 of the enactment of this Act that is inconsistent with any 

5 provision of this Act but only to the extent of such incon6 sistency. 

7 (b) TECHNICAL AND CONFORMING AMENDMENTS.— 

8 Before the end of the 6-month period beginning on the 

9 date of the enactment of this Act, the Secretary of the 

10 Treasury shall submit to the Congress a proposed draft 

11 of legislation of the Monetary Authority that, if enacted, 

12 would implement such technical and conforming amend13 ments as the Monetary Authority may recommend— 

14 (1) to repeal the provisions of law referred to 

15 in subsection (a) that are inconsistent with this Act; 

16 and 

17 (2) to further clarify and implement the provi18 sions of this Act. 

19 TITLE I—ORIGINATION OF 

20 UNITED STATES MONEY 

21 SEC. 101. EXERCISE OF CONSTITUTIONAL AUTHORITY TO 

22 CREATE MONEY. 

23 (a) IN GENERAL.—Pursuant to the exercise by the 

24 Congress of the authority contained in the 5th clause of 

25 section 8 of Article I of the Constitution of the United 

26 States of America— 


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1 (1) the authority to create money within the 

2 United States shall hereafter reside exclusively with 

3 the Federal Government; and 

4 (2) the money so created shall be known as 

5 United States Money and denominated and ex6 pressed as provided in section 5101 of title 31, 

7 United States Code. 

8 (b) EXERCISE OF SOVEREIGN POWER.—The creation 

9 of United States Money under this Act is the legal expres10 sion of the sovereign power of the Nation and confers upon 

11 its bearer an unconditional means of payment. 

12 (c) LIMITATION ON EXPRESSION.—Beginning on the 

13 effective date— 

14 (1) only the coin, notes, or other forms of legal 

15 tender, including electronic currency, originated by 

16 the United States Treasury under the authority of 

17 this Act shall be deemed as United States money; 

18 and 

19 (2) it shall be unlawful for any person to des20 ignate any credit, note, bond, script or other finan21 cial instrument as United States Money. 

22 SEC. 102. UNLAWFUL FOR PERSONS TO CREATE MONEY. 

23 Any person who creates or originates United States 

24 money by lending against deposits, through so-called frac25 tional reserve banking, or by any other means, after the 


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1 effective date shall be fined under title 18, United States 

2 Code, imprisoned for not more than 5 years, or both. 

3 SEC. 103. PRODUCTION OF UNITED STATES MONEY. 

4 (a) COMMENCING FULL PRODUCTION OF UNITED

5 STATES CURRENCY.—Section 5115 of title 31, United 

6 States Code, is amended by striking subsections (a) and 

7 (b) and inserting the following new subsections: 

8 ‘‘(a) IN GENERAL.—In order to furnish suitable 

9 notes for circulation as United States money, the Sec10 retary of the Treasury shall cause plates and dies to be 

11 engraved in the best manner to guard against counterfeits 

12 and fraudulent alterations, and shall have printed there13 from and numbered such quantities of such notes of the 

14 denominations of $1, $2, $5, $10, $20, $50, $100, $500, 

15 $1,000, $5,000, $10,000 as may be required. 

16 ‘‘(b) FORM AND TENOR.—United States currency 

17 notes for circulation as United States money shall be in 

18 form and tenor as directed by the Secretary of the Treas19 ury.’’. 

20 (b) CEASING PRODUCTION OF FEDERAL RESERVE

21 NOTES.—The Secretary of the Treasury shall wind-down 

22 and cease production of Federal reserve notes under the 

23 8th undesignated paragraph of section 16 of the Federal 

24 Reserve Act (12 U.S.C. 418) as quickly as practicable 

25 after the date of the enactment of this Act, but no later 


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1 than the effective date, in coordination with the start-up 

2 and maintenance of production of United States currency 

3 under section 5115 of title 31, United States Code. The 

4 Secretary shall ensure that at all times the amount of Fed5 eral Reserve notes in circulation is sufficient to meet de6 mand until the production of United States currency is 

7 sufficient to meet such demand. 

8 (c) CONTINUING CIRCULATION UNTIL RETIRE9 MENT.—Any Federal Reserve notes in circulation shall 

10 continue to be legal tender until retired in accordance with 

11 applicable provisions of law. 

12 SEC. 104. LEGAL TENDER. 

13 (a) IN GENERAL.—United States Money shall enter 

14 into general domestic circulation as full legal tender in 

15 payment of all debts public and private. 

16 (b) TECHNICAL AND CONFORMING AMENDMENT.— 

17 Section 5103 of title 31, United States Code, is amended 

18 by striking ‘‘(including Federal reserve notes and circu19 lating notes of Federal reserve banks and national banks)’’ 

20 and inserting ‘‘in the form of United States Money’’. 

21 SEC. 105. DISBURSEMENTS TO BE DENOMINATED IN 

22 UNITED STATES MONEY. 

23 On the effective date, all United States Government 

24 disbursements shall be denominated in United States 

25 Money, the unit being the dollar, symbolized as $. 


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1 SEC. 106. ORIGINATION IN LIEU OF BORROWING. 

2 (a) IN GENERAL.—After the effective date, and sub3 ject to limitations established by the United States Mone4 tary Authority under provisions of section 302, the Sec5 retary shall originate United States Money to address any 

6 negative fund balances resulting from a shortfall in avail7 able Government receipts to fund Government appropria8 tions authorized by Congress under law. 

9 (b) PROHIBITION ON GOVERNMENT BORROWING.— 

10 After the effective date, unless otherwise provided by an 

11 Act of the Congress enacted after such date— 

12 (1) no amount may be borrowed by the Sec13 retary from any source; and 

14 (2) no amount may be borrowed by any Federal 

15 agency or department, any independent establish16 ment of the executive branch, or any other instru17 mentality of the United States (other than a na18 tional bank, Federal savings association, or Federal 

19 credit union) from any source other than the Sec20 retary. 

21 (c) RULE OF CONSTRUCTION.—No provision of this 

22 Act shall be construed as preventing the Congress from 

23 exercising its constitutional authority to borrow money on 

24 the full faith and credit of the United States. 

25 (d) TECHNICAL AND CONFORMING AMENDMENT.— 

26 On the effective date, chapter 31 of title 31, United States 


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1 Code, is hereby repealed, subject to the retirement of out2 standing instruments of indebtedness of the United States 

3 in accordance with section 401. 

4 SEC. 107. RETIREMENT OF INSTRUMENTS OF INDEBTED5 NESS. 

6 Before the effective date, the Secretary shall com7 mence to retire all outstanding instruments of indebted8 ness of the United States by payment in full of the amount 

9 legally due the bearer in United States Money, as such 

10 amounts become due. 

11 SEC. 108. ACCOUNTING. 

12 (a) IN GENERAL.—The Secretary shall account for 

13 the disbursement of United States Money and of current 

14 fund balances through accounting reports maintained and 

15 published by the Secretary and by departments and agen16 cies of the United States Government. 

17 (b) GAO AUDIT.—The Comptroller General of the 

18 United States shall conduct an independent biennial audit. 

19 TITLE II—ENTRY OF U.S. MONEY 

20 INTO CIRCULATION 

21 SEC. 201. ENTRY OF U.S. MONEY INTO CIRCULATION. 

22 The Secretary shall cause United States Money to 

23 enter into circulation by and through any of the following 

24 means: 


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1 (1) Any origination or disbursement of funds to 

2 accomplish Federal expenditures authorized and ap3 propriated by an Act of the Congress. 

4 (2) Any disbursement to retire outstanding in5 struments of indebtedness of the Federal Govern6 ment or the Secretary of the Treasury as such in7 struments become due. 

8 (3) Any contribution authorized by an Act of 

9 the Congress subject to any limitation established by 

10 the Monetary Authority to the Revolving Fund es11 tablished in section 302 of this Act. 

12 (4) Any action provided for in the transitional 

13 arrangements specified in title IV of this Act, includ14 ing the conversion of all deposits in transaction ac15 counts into United States Money. 

16 (5) Any exercise of ‘‘lender of last resort’’ emer17 gency authorities under the emergency procedures 

18 specified in section 305. 

19 (6) Any purchase of stock in a Federal reserve 

20 bank from a member bank and of any other assets 

21 as prescribed under the Federal Reserve Act as re22 quired to accomplish the purposes of section 301. 

23 (7) Any other means, and for any other purpose 

24 explicitly authorized by an Act of the Congress that 

25 becomes law after the effective date of this Act. 


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1 TITLE III—RECONSTITUTION OF 

2 THE FEDERAL RESERVE SYSTEM 

3 SEC. 301. RECONSTITUTION OF THE FEDERAL RESERVE. 

4 (a) GOVERNMENT ACQUISITION OF ALL NET ASSETS

5 OF FEDERAL RESERVE SYSTEM.—On the effective date, 

6 the Secretary shall purchase on behalf of the United 

7 States all net assets in the Federal Reserve System, in8 cluding the Federal reserve banks, according to the rules 

9 specified in the Federal Reserve Act (12 U.S.C. 288) for 

10 this purpose. 

11 (b) REPAYMENT OF RESERVES.—Any reserves of any 

12 member bank that is held by any Federal reserve bank 

13 shall be returned to the member bank in the form of 

14 United States Money, subject to the provisions contained 

15 in sections 401 and 402(b). 

16 SEC. 302. ESTABLISHMENT OF THE UNITED STATES MONE17 TARY AUTHORITY. 

18 (a) MONETARY AUTHORITY.— 

19 (1) ESTABLISHMENT.— 

20 (A) IN GENERAL.—There is hereby estab21 lished the Monetary Authority as an authority 

22 within the Department of the Treasury under 

23 the general oversight of the Secretary of the 

24 Treasury. 


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1 (B) AUTONOMY OF MONETARY AUTHOR2 ITY.—The Secretary of the Treasury may not 

3 intervene in any matter or proceeding before 

4 the Monetary Authority, unless otherwise spe5 cifically provided by law. 

6 (C) INDEPENDENCE OF MONETARY AU7 THORITY.—The Secretary of the Treasury may 

8 not delay, prevent, or intervene in the issuance 

9 of any regulation or other determination of the 

10 Monetary Authority, including the determina11 tion of the amounts of money to be originated 

12 and most efficient method of disbursement con13 sistent with the appropriations of Congress and 

14 the statutory objectives of monetary policy as 

15 specified in this Act. 

16 (2) MEMBERSHIP.— 

17 (A) IN GENERAL.—The Monetary Author18 ity shall consist of 9 public members appointed 

19 by the president, by and with the advice and 

20 consent of the Senate. 

21 (B) TERMS.— 

22 (i) IN GENERAL.—Except as provided 

23 in subparagraph (E), each member of the 

24 Monetary Authority shall be appointed to a 

25 term of 6 years. 


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1 (ii) CONTINUATION OF SERVICE.— 

2 Each member of the Monetary Authority 

3 may continue to serve after the expiration 

4 of the term of office to which such member 

5 was appointed until a successor has been 

6 appointed and qualified. 

7 (C) POLITICAL AFFILIATION.—Not more 

8 than 4 of the members of the Monetary Author9 ity may be members of the same political party. 

10 (D) VACANCY.— 

11 (i) IN GENERAL.—Any vacancy on the 

12 Monetary Authority shall be filled in the 

13 manner in which the original appointment 

14 was made. 

15 (ii) INTERIM APPOINTMENTS.—Any 

16 member appointed to fill a vacancy occur17 ring before the expiration of the term for 

18 which such member’s predecessor was ap19 pointed shall be appointed only for the re20 mainder of such term. 

21 (E) STAGGERED TERMS.—Of the members 

22 first appointed to the Monetary Authority after 

23 the enactment of this Act— 

24 (i) 1 shall be appointed for a term of 

25 2 years; 


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1 (ii) 2 shall be appointed for a term of 

2 3 years; 

3 (iii) 2 shall be appointed for a term of 

4 4 years; 

5 (iv) 2 shall be appointed for a term of 

6 5 years; and 

7 (v) 2 shall be appointed for the full 

8 term of 6 years. 

9 (3) CHAIRPERSON.—One of the members of the 

10 Monetary Authority shall be designated by the Presi11 dent as the Chairperson of the Monetary Authority. 

12 (4) DUTIES.—The Monetary Authority shall— 

13 (A) establish monetary supply policy and 

14 monitor the Nation’s monetary status; and 

15 (B) carry out such other responsibilities as 

16 the President may delegate to the Monetary 

17 Authority or that may be provided by an Act of 

18 Congress. 

19 (5) GOVERNING PRINCIPLE OF MONETARY POL20 ICY.—The Monetary Authority shall pursue a mone21 tary policy based on the governing principle that the 

22 supply of money in circulation should not become in23 flationary nor deflationary in and of itself, but will 

24 be sufficient to allow goods and services to move 

25 freely in trade in a balanced manner. The Monetary 


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1 Authority shall maintain long run growth of the 

2 monetary and credit aggregates commensurate with 

3 the economy’s long run potential to increase produc4 tion, so as to promote effectively the goals of max5 imum employment, stable prices, and moderate long6 term interest rates. 

7 (6) MEETINGS.—The Monetary Authority shall 

8 meet on a regular basis subject to the call of the 

9 Chairperson, the Secretary, or a majority of the 

10 members. 

11 (7) PAY.—The members of the Monetary Au12 thority shall receive a salary at annual rates equal 

13 to the annual rate determined under section 5 of 

14 title 28, United States Code, for an associate justice. 

15 (8) STAFF.—The Monetary Authority may ap16 point and establish the pay of such employees as the 

17 Monetary Authority determines is appropriate to as18 sist the Monetary Authority to carry out the duties 

19 imposed under this section. 

20 (b) RESPONSIBILITY OF SECRETARY.—The Secretary 

21 shall regulate the monetary supply in reasonable accord22 ance with targets established by the Monetary Authority. 

23 (c) REPORTS ON DISCREPANCIES.—The Secretary 

24 shall report to the Congress any discrepancy between any 


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1 monetary target and the monetary supply in excess of 0.5 

2 percent at the end of each quarter. 

3 SEC. 303. ESTABLISHMENT OF THE BUREAU OF THE FED4 ERAL RESERVE. 

5 (a) IN GENERAL.—Subchapter I of chapter 3 of title 

6 31, United States Code, is amended by adding at the end 

7 the following new section: 

8 ‘‘§ 314. Bureau of the Federal Reserve 

9 ‘‘(a) ESTABLISHMENT.—There is hereby established 

10 the Bureau of the Federal Reserve as a bureau within the 

11 Department of the Treasury (hereafter in this section re12 ferred to as the ‘Bureau’). 

13 ‘‘(b) MANAGEMENT.— 

14 ‘‘(1) COMMISSIONER.—The management of the 

15 Bureau shall be vested in a Commissioner who, with 

16 the assistance of the Deputy Commissioner and such 

17 staff as the Commissioner may appoint, shall carry 

18 out the duties vested in the Bureau and the Com19 missioner. 

20 ‘‘(2) DEPUTY COMMISSIONER.—There is hereby 

21 established within the Bureau the position of Deputy 

22 Commissioner. 

23 ‘‘(3) APPOINTMENT.—The Commissioner and 

24 the Deputy Commissioner shall be appointed by the 


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1 president, by and with the advice and consent of the 

2 Senate. 

3 ‘‘(4) TERMS.— 

4 ‘‘(A) IN GENERAL.—The Commissioner 

5 and the Deputy Commissioner shall each be ap6 pointed to a term of 7 years. 

7 ‘‘(B) STAGGERED TERMS.—Notwith8 standing subparagraph (A), the person first ap9 pointed Deputy Commissioner shall be ap10 pointed to a term of 4 years. 

11 ‘‘(5) VACANCY.— 

12 ‘‘(A) IN GENERAL.—Any vacancy on the 

13 Bureau shall be filled in the manner in which 

14 the original appointment was made. 

15 ‘‘(B) INTERIM APPOINTMENTS.—Any 

16 member appointed to fill a vacancy occurring 

17 before the expiration of the term for which such 

18 member’s predecessor was appointed shall be 

19 appointed only for the remainder of such term. 

20 ‘‘(c) DUTIES.— 

21 ‘‘(1) MONETARY POLICY.—The Bureau shall— 

22 ‘‘(A) administer, under the direction of the 

23 Secretary, the origination and entry into cir24 culation of United States Money, subject to the 


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1 limitations established by the Monetary Author2 ity; and 

3 ‘‘(B) administer lending of United States 

4 Money to authorized depository institutions, as 

5 described in section 403 (‘Revolving Fund’) to 

6 ensure that— 

7 ‘‘(i) money creation is solely a func8 tion of the United States Government; and 

9 ‘‘(ii) fractional reserve lending is 

10 ended. 

11 ‘‘(2) TRANSFERRED FUNCTIONS.—After the ef12 fective date, the Bureau shall exercise all functions 

13 consistent with this Act which, before such date, 

14 were carried out under the direction of the Board of 

15 Governors of the Federal Reserve System. 

16 ‘‘(3) ITEMIZATION BY SECRETARY.—Not less 

17 than 90 days before the effective date, the Secretary 

18 and the Monetary Authority shall itemize— 

19 ‘‘(A) the functions of the Board of Gov20 ernors of the Federal Reserve System that are 

21 transferred to the Bureau pursuant to para22 graph (2); and 

23 ‘‘(B) the provisions of the Federal Reserve 

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1 cation of which the term ‘Bureau’ (as estab2 lished under this section) shall be substituted 

3 for the term ‘Board of Governors of the Federal 

4 Reserve System’ or ‘Board’, as the case may 

5 be.’’. 

6 (b) CLERICAL AMENDMENT.—The table of sections 

7 for subchapter I of chapter 3 of title 31, United States 

8 Code, is amended by adding at the end the following new 

9 item: 

‘‘314. Bureau of the Federal Reserve’’. 

10 (c) ROLE OF BOARD AFTER ENACTMENT.—With ef11 fect on the effective date, the Board of Governors of the 

12 Federal Reserve System shall be dissolved. 

13 SEC. 304. FORECASTING OF DISBURSEMENT REQUIRE14 MENTS. 

15 The Secretary shall— 

16 (1) forecast disbursement requirements on a 

17 daily, monthly, and annual basis; 

18 (2) provide such forecasts to the Congress and 

19 the public; 

20 (3) integrate forecasts with the Federal budget 

21 process; 

22 (4) maintain a sufficient research capability to 

23 continuously and effectively assess the impact of dis24 bursement of United States Money on all aspects of 

25 the domestic and international economies; and 


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1 (5) report to the Congress and the public regu2 larly on the economic impact of disbursements of 

3 United States Money and the status of the monetary 

4 supply. 

5 SEC. 305. LENDER OF LAST RESORT; EMERGENCY PROCE6 DURES. 

7 (a) RECOMMENDATION OF THE PRESIDENT UPON

8 RECOMMENDATION OF EMERGENCY BOARD.—The Mone9 tary Authority may not exercise any authority under the 

10 3rd undesignated paragraph of section 13 of the Federal 

11 Reserve Act unless— 

12 (1) the Emergency Board established under 

subsection (b) recommends, upon a vote of 2 13 ⁄3 of the 

14 members, to the House of Representatives and the 

15 Senate, that the House of Representatives and the 

16 Senate adopt a concurrent resolution calling on the 

17 President to certify that a national emergency exists 

18 which requires the exercise of such authority; 

19 (2) the House of Representatives and the Senate each adopt, by a vote of 2 20 ⁄3 of the members 

21 present, a concurrent resolution calling on the Presi22 dent to certify that a national emergency exists 

23 which requires the exercise of such authority; and 


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1 (3) the President issues a certification that a 

2 national emergency exists which requires the exercise 

3 of such authority by the Monetary Authority. 

4 (b) EMERGENCY BOARD.—There is established for 

5 purposes of this section the Emergency Board which shall 

6 consist of the following members: 

7 (1) The President. 

8 (2) The Secretary of Commerce. 

9 (3) The Secretary of Labor. 

10 (4) The Secretary of the Treasury. 

11 (5) The Speaker of the House of Representa12 tives. 

13 (6) The minority leader of the House of Rep14 resentatives. 

15 (7) The majority leader of the Senate. 

16 (8) The minority leader of the Senate. 

17 (9) The chairpersons and ranking members of 

18 the Committee on Financial Services and the Com19 mittee on Oversight and Government Reform of the 

20 House of Representatives. 

21 (10) The chairpersons and ranking members of 

22 the Committee on Banking, Housing, and Urban Af23 fairs and the Committee on Homeland Security and 

24 Governmental Affairs of the Senate. 


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1 (c) RULE OF CONSTRUCTION.—Except as provided in 

2 subsection (a), no provision of this Act shall be construed 

3 as affecting the authority of the Monetary Authority under 

4 the 3rd undesignated paragraph of section 13 of the Fed5 eral Reserve Act. 

6 SEC. 306. SAVINGS PROVISIONS AND TRANSFER PROVI7 SIONS. 

8 (a) SAVINGS PROVISIONS.— 

9 (1) EXISTING RIGHTS, DUTIES, AND OBLIGA10 TIONS NOT AFFECTED.—The establishment of the 

11 Bureau of the Federal Reserve shall not affect the 

12 validity of any right, duty, or obligation of the 

13 United States, the Bureau (as the successor to the 

14 Board of Governors of the Federal Reserve System 

15 or any Federal reserve bank), or any other person 

16 that— 

17 (A) arises under any provision of law relat18 ing to any function of the Board of Governors 

19 of the Federal Reserve System transferred to 

20 the Bureau by this title and amendments made 

21 by this title; and 

22 (B) existed on the day before the effective 

23 date. 

24 (2) CONTINUATION OF SUITS.—This Act shall 

25 not abate any proceeding commenced by or against 


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1 the Board of Governors (or any Federal reserve 

2 bank) before the effective date with respect to any 

3 function of the Board of Governors (or any Federal 

4 reserve bank) transferred to the Bureau by this title, 

5 except that the Bureau shall be substituted for the 

6 Board of Governors (or Federal reserve bank) as a 

7 party to any such proceeding as of the effective date. 

8 (b) TRANSFER OF CERTAIN PERSONNEL.— 

9 (1) IDENTIFYING EMPLOYEES FOR TRANS10 FER.—The Secretary and the Chairman of the 

11 Board of Governors of the Federal Reserve System 

12 shall— 

13 (A) jointly determine the number of em14 ployees of the Board necessary to perform or 

15 support the functions of the Board of Gov16 ernors that are transferred to the Monetary Au17 thority (if any) and the Bureau of the Federal 

18 Reserve pursuant to a provision of or amend19 ment made by this title; and 

20 (B) consistent with the number determined 

21 under subparagraph (A), jointly identify em22 ployees of the Board of Governors for transfer 

23 in a manner that the Secretary and the Board 

24 of Governors of the Federal Reserve System, in 

25 their sole discretion, determine to be equitable. 


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1 (2) IDENTIFIED EMPLOYEES TRANSFERRED.— 

2 All employees of the Board of Governors of the Fed3 eral Reserve System identified under paragraph 

4 (1)(B) shall be transferred to the Monetary Author5 ity or the Bureau of the Federal Reserve, as the 

6 case may be, for employment. 

7 (3) FEDERAL RESERVE BANK EMPLOYEES.— 

8 Employees of any Federal reserve bank, as of the 

9 day before the transfer date for any employees of 

10 the Board of Governors of the Federal Reserve Sys11 tem, shall be treated as employees of the Board of 

12 Governors for purposes of paragraph (1) and (2). 

13 TITLE IV—TRANSITIONAL 

14 ARRANGEMENTS 

15 SEC. 401. CONVERSION OF FEDERAL RESERVE NOTES. 

16 (a) IN GENERAL.—Before the end of the 120-day pe17 riod beginning on the date of the enactment of this Act, 

18 the Secretary shall establish the rules and procedures for 

19 converting outstanding Federal reserve notes to United 

20 States Money of equal face value. 

21 (b) PROVISION OF SUPPLY SUFFICIENT FOR CON22 VERSION AND ISSUANCE.—Before the end of the 150-day 

23 period beginning on the date of the enactment of this Act 

24 and as Federal reserve notes are converted to United 

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1 cient quantity of United States Money to the domestic 

2 banking system to allow for conversion of all outstanding 

3 Federal reserve notes and the issuance of additional cur4 rency as required. 

5 (c) DISBURSAL OF FUNDS.—After the end of the 

6 180-day period beginning on the date of the enactment 

7 of this Act, all financial institutions within the United 

8 States shall only disburse funds in United States Money, 

9 whether as currency, an addition to an available account 

10 balance, or other instrument. 

11 (d) DISPOSAL OF OBSOLETE CURRENCY.—The Sec12 retary shall promptly dispose of (in the manner provided 

13 under section 5120(b) of title 31, United States Code, for 

14 the disposal of obsolete United States currency) all Fed15 eral reserve notes as they are returned in exchange for 

16 United States Money. 

17 (e) TECHNICAL AND CONFORMING AMENDMENT.— 

18 Effective at the end of the 150-day period beginning on 

19 the date of the enactment of this Act, section 16 of the 

20 Federal Reserve Act is amended by striking the 8th, 9th, 

21 10th, 11th, and 12th undesignated paragraphs (12 U.S.C. 

22 418, 419, 420, 421, and omitted, respectively). 


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1 SEC. 402. REPLACING FRACTIONAL RESERVE BANKING 

2 WITH THE LENDING OF UNITED STATES 

3 MONEY. 

4 (a) CONVERSION PROCESS.— 

5 (1) DEPOSITS.— 

6 (A) IN GENERAL.—All deposits at any de7 pository institution shall be designated as and 

8 treated as United States Money (either cash or 

9 an electronic equivalent) and as transaction ac10 counts. 

11 (B) PROHIBITIONS.—In addition to sub12 section (d), the following provisions shall apply 

13 with respect to United States Money on deposit 

14 in a transaction account at any depository insti15 tution: 

16 (i) INTEREST.—No interest may be 

17 paid or may accrue on any United States 

18 Money on deposit in a transaction account 

19 at any depository institution. 

20 (ii) DEPOSITS AS BAILMENT.—Any 

21 United States Money on deposit in a trans22 action account at any depository institu23 tion shall— 

24 (I) be treated as a bailment for 

25 the mutual benefit of the parties and 

26 terminable at will; and 


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1 (II) as property held in trust as 

2 bailed property, not be treated as an 

3 asset of the depository institution or 

4 as a source of credit. 

5 (C) EXCEPTION FOR LONG-TERM SAVINGS

6 NOT SUBJECT TO DEPOSIT INSURANCE.— 

7 (i) IN GENERAL.—Subparagraph (B) 

8 shall not apply to any liability of deposi9 tory institution to a customer for any 

10 amount in an account at the depository in11 stitution pursuant to a contract that re12 stricts the availability of any such amount 

13 for a fixed term and does not permit 

14 amounts to be transferred in any manner 

15 for the benefit of a third party. 

16 (ii) FIXED-TERM SAVINGS NOT IN17 SURED.—Any account described in clause 

18 (i) may not be treated as a deposit, for 

19 purposes of the Federal Deposit Insurance 

20 Act, or as a share draft account, for pur21 poses of the Federal Credit Union Act. 

22 (2) OUTSTANDING CREDIT.—Any asset of a de23 pository institution that results from credit extended 

24 against, is attributable to, or has been accounted for 


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1 with respect to, amounts described in paragraph 

2 (1)(A) shall, as of the effective date— 

3 (A) be a liability of the depository institu4 tion to the Federal Government; and 

5 (B) as the outstanding balance is repaid 

6 pursuant to its terms, shall be paid over to the 

7 Federal Government. 

8 (3) DEPOSIT IN REVOLVING FUND.—The mon9 ies paid to the Federal Government shall be depos10 ited into the Revolving Account established in sec11 tion 403. 

12 (4) IN GENERAL.—Before the effective date and 

13 subject to the requirements of this section, the Mon14 etary Authority shall establish and publish the ac15 counting rules, pricing, and processes which will con16 vert all bank credit in circulation as of the date of 

17 such conversion, into United States legal tender 

18 money. 

19 (5) RETENTION OF INTEREST PAYMENTS.—A 

20 depository institution may keep as income, any in21 terest payment made by a customer to a depository 

22 institution on an outstanding loan for which the de23 pository institution became indebted to the Federal 

24 Government under paragraph (2). 


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1 (b) TREATMENT OF AMOUNTS ON RESERVE AT A

2 FEDERAL RESERVE BANK.—The Monetary Authority 

3 shall determine, by the effective date, how the reserves of 

4 a depository institution at a Federal reserve bank pursu5 ant to section 19 of the Federal Reserve Act shall be treat6 ed, so as to promote a seamless transition to the new sys7 tem. 

8 (c) ACCOUNTS IN GENERAL.—Before the effective 

9 date, the Monetary Authority shall prescribe new lending 

10 and accounting regulations for various types of accounts 

11 including transaction accounts and time deposit accounts 

12 described in subsections (d) and (e). 

13 (d) TRANSACTION ACCOUNTS.— 

14 (1) FRACTIONAL RESERVE BANKING ENDED.— 

15 The regulations prescribed under subsection (c) shall 

16 provide that— 

17 (A) any depository institution shall have a 

18 fiduciary responsibility for the money of any de19 positor on deposit in a transaction account 

20 which— 

21 (i) shall be held for the exclusive use 

22 of the account holder; and 

23 (ii) may not be used by a depository 

24 institution to fund loans or investments; 


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1 (B) a dollar of United States Money shall 

2 be on hand or in a Federal Government account 

3 for each dollar in a transaction account; and 

4 (C) a depository institution may charge a 

5 reasonable fee for providing transaction account 

6 services. 

7 (2) TRANSACTION ACCOUNT DEFINED.—For 

8 purposes of this section, the term, ‘‘transaction ac9 count’’— 

10 (A) means a deposit or account on which 

11 the depositor or account holder is permitted to 

12 make withdrawals by negotiable or transferable 

13 instrument, payment orders of withdrawal, tele14 phone transfers, or other similar items for the 

15 purpose of making payments or transfers to 

16 third persons or others; and 

17 (B) includes demand deposits, negotiable 

18 order of withdrawal accounts, savings deposits 

19 subject to automatic transfers, and share draft 

20 accounts. 

21 (e) UNITED STATES MONEY AS SOURCE OF

22 LOANS.—After the effective date, all lending by depository 

23 institutions may be accomplished only by the lending of 

24 actual United States Money that is— 


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1 (1) owned by the depository institution from 

2 earnings and or capital contributions by investors; 

3 (2) borrowed at interest from the Federal Gov4 ernment; or 

5 (3) borrowed at interest through the issuance of 

6 bonds or other interest-bearing securities by the 

7 lending bank, to the extent that such bonds or secu8 rities are structured in a manner consistent with the 

9 purposes of this Act. 

10 (f) ENCOURAGEMENT OF PRIVATE, PROFIT-MAKING

11 MONEY LENDING ACTIVITY.—The regulations prescribed 

12 and actions taken under this section shall be established 

13 and taken in a manner that— 

14 (1) encourages private, profit-making money 

15 lending activity by banking institutions; and 

16 (2) prohibits the creation of private money 

17 through the establishment of lending credit against 

18 depository receipts, sometimes referred to as ‘‘frac19 tional reserve banking’’. 

20 SEC. 403. ESTABLISHMENT OF FEDERAL REVOLVING FUND. 

21 (a) REVOLVING LOAN FUND.—Subject to provision 

22 in advance in an appropriation Act, there is hereby estab23 lished a revolving loan fund in the Treasury of the United 

24 States where amounts received from depository institu25 tions under terms specified in section 402 of this Act shall 


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1 be deposited and made available for relending to banking 

2 institutions and for other purposes. 

3 (b) ADMINISTRATION.—The Revolving Fund shall be 

4 administered by the Bureau under such terms and condi5 tions as the Secretary shall prescribe consistent with the 

6 purposes of this Act. 

7 (c) NATIONAL EMERGENCY.—In the event of a find8 ing by the President that a National Emergency exists, 

9 and with the concurrence of the Congress in accordance 

10 with the emergency procedures specified under section 

11 305, the Secretary may draw upon up to 80 percent of 

12 the funds on deposit in the Revolving Fund. Such funds 

13 shall be returned to the Revolving Fund within 3 years 

14 of the date of initial disbursement, either through repay15 ment of loans or through an Appropriation Act, unless the 

16 Secretary receives from the Congress specific authoriza17 tion to extend the term of the loans. The authorization 

18 of Congress shall be given by joint resolution. 

19 TITLE V—ADDITIONAL 

20 PROVISIONS 

21 SEC. 501. DIRECT FUNDING OF INFRASTRUCTURE IM22 PROVEMENTS. 

23 (a) REPORT REQUIRED ON OPPORTUNITIES FOR DI24 RECT FUNDING.—Before the effective date, the Secretary, 

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1 partments, agencies and independent establishments, shall 

2 report to the Congress on opportunities to utilize direct 

3 funding by the United States Government to modernize, 

4 improve, and upgrade the physical economy of the United 

5 States in such areas as transportation, agriculture, water 

6 usage and availability, sewage systems, medical care, edu7 cation, and other infrastructure systems, to promote the 

8 general welfare, and to stabilize the Social Security retire9 ment system. 

10 (b) BROAD EQUITABLE DISPERSION OF FUNDING.— 

11 Generally, any program recommended for direct funding 

12 shall be undertaken throughout the Nation. 

13 SEC. 502. INTEREST RATE CEILINGS. 

14 (a) LIMIT ON AMOUNT OF FINANCING FEES.—The 

15 total amount of interest charged by a financial institution 

16 on any extension of loans (other than a mortgage) to any 

17 individual borrower through amortization, including all 

18 fees and service charges, shall not exceed the total amount 

19 of the loan extended. 

20 (b) LIMIT ON RATE.—The annual percentage rate 

21 applicable to any loan of money may not exceed 8 percent 

22 on unpaid balances, inclusive of all charges. 

23 SEC. 503. AUTHORITY OF FDIC. 

24 Except as provided in section 402 and the amend25 ment made by section 3(b), no provision of this Act shall 


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1 be construed as altering or affecting any authority or func2 tion of the Federal Deposit Insurance Corporation. No 

3 later than 12 months after the date of the enactment of 

4 this Act, the Chairperson of the Board of Directors of the 

5 Federal Deposit Insurance Corporation shall study and 

6 make recommendations to the Congress regarding any 

7 changes in authorities, including expanded supervision and 

8 monitoring, required to enhance the oversight and regu9 latory roles of the Federal Deposit Insurance Corporation 

10 under this Act. 

11 SEC. 504. MONETARY GRANTS TO STATES. 

12 (a) IN GENERAL.—Each year, the Monetary Author13 ity shall instruct the Secretary to disperse grants over a 

14 12-month period to the States equal to 25 percent of the 

15 money created under this title in the prior year. In the 

16 first year the amount of such grants shall be 25 percent 

17 of the anticipated money creation in that first year. 

18 (b) USE OF GRANTS FOR BROAD-BASED PUR19 POSES.—The States may use such funds in broadly des20 ignated areas of public infrastructure, education, health 

21 care and rehabilitation, pensions, and paying for unfunded 

22 Federal mandates. 

23 SEC. 505. EDUCATION FUNDING PROGRAM. 

24 Before the end of the 120-day period beginning on 

25 the date of the enactment of this Act, the Secretary, in 


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1 cooperation with the Secretary of Education, shall provide 

2 recommendations to the Congress for a program to help 

3 fund our educational system that will put the United 

4 States on par with other highly developed nations, and to 

5 sufficiently provide for universal pre-kindergarten fully 

6 funded State programs for elementary and secondary edu7 cation and universal college at every 2- and 4-year public 

8 institution of higher learning and create a learning envi9 ronment so that every child has an opportunity to reach 

10 their full educational potential. 

11 SEC. 506. SOCIAL SECURITY TRUST FUNDS. 

12 The Secretary in consultation with the Board of 

13 Trustees of the Federal Old-Age and Survivors Insurance 

14 and Federal Disability Insurance Trust Funds shall sub15 mit to the Monetary Authority any requests to cover im16 pending deficits in Social Security Trust Fund accounts. 

17 SEC. 507. INITIAL MONETARY DIVIDEND TO CITIZENS. 

18 (a) IN GENERAL.—Before the effective date, the Sec19 retary, in cooperation with the Monetary Authority, shall 

20 make recommendations to the Congress for payment of 

21 a Citizens Dividend as a tax-free grant to all United 

22 States citizens residing in the United States in order to 

23 provide liquidity to the banking system at the commence24 ment of this Act, before governmental infrastructure ex25 penditures have had a chance to work into circulation. 


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1 (b) STUDY OF EFFECTS OF CITIZENS DIVIDEND.— 

2 The Secretary shall maintain a thorough study of the ef3 fects of the Citizens Dividend observing its effects on pro4 duction and consumption, prices, morale, and other eco5 nomic and fiscal factors. 

6 SEC. 508. UNIVERSAL HEALTH CARE FUNDING. 

7 The Congress shall be aware that funding through 

8 this Act is available for a universal health care plan as 

9 may be enacted by Congress. 

10 SEC. 509. RESOLVING THE MORTGAGE CRISIS. 

11 The Congress shall be aware that funding through 

12 this Act is available for Congressional enactments for re13 solving aspects of the mortgage crisis. 

14 SEC. 510. INTEREST FREE LENDING TO LOCAL GOVERN15 MENTAL BODIES. 

16 Before the end of the 180-day period beginning on 

17 the date of the enactment of this Act, the Secretary shall 

18 provide recommendations to the Congress for a program 

19 of interest-free lending of United States Money to State 

20 and local governmental entities, including school boards 

21 and emergency fire services for infrastructure improve22 ments under their control and within their jurisdictions, 

23 based on per capita amounts and other criteria to assure 

24 equity as determined by the Monetary Authority. 

Æ 


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