II 

117TH CONGRESS 

2D SESSION S. 3490 

To amend the Federal Reserve Act to bring the non-monetary policy related 

functions of the Board of Governors of the Federal Reserve System 

into the appropriations process, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JANUARY 12 (legislative day, JANUARY 10), 2022 

Mr. TILLIS introduced the following bill; which was read twice and referred 

to the Committee on Banking, Housing, and Urban Affairs 

A BILL 

To amend the Federal Reserve Act to bring the non-monetary policy related functions of the Board of Governors 

of the Federal Reserve System into the appropriations 

process, 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 Regu5 latory Oversight Act’’. 


pbinns on DSKJLVW7X2PROD with BILLS
2 

•S 3490 IS

1 SEC. 2. BRINGING THE NON-MONETARY POLICY RELATED 

2 FUNCTIONS OF THE BOARD OF GOVERNORS 

3 OF THE FEDERAL RESERVE SYSTEM INTO 

4 THE APPROPRIATIONS PROCESS. 

5 (a) IN GENERAL.—The Federal Reserve Act is 

6 amended by inserting after section 11B the following: 

7 ‘‘SEC. 11C. APPROPRIATIONS REQUIREMENT FOR NON8 MONETARY POLICY RELATED ADMINISTRA9 TIVE COSTS. 

10 ‘‘(a) APPROPRIATIONS REQUIREMENT.— 

11 ‘‘(1) RECOVERY OF COSTS OF ANNUAL APPRO12 PRIATION.—The Board of Governors of the Federal 

13 Reserve System and the Federal reserve banks shall 

14 collect assessments and other fees, as provided under 

15 this Act, that are designed to recover the costs to 

16 the Government of the annual appropriation to the 

17 Board of Governors of the Federal Reserve System 

18 by Congress. The Board of Governors of the Federal 

19 Reserve System and the Federal reserve banks may 

20 only incur obligations or allow and pay expenses 

21 with respect to non-monetary policy related adminis22 trative costs pursuant to an appropriations Act. 

23 ‘‘(2) OFFSETTING COLLECTIONS.—Assessments 

24 and other fees described under paragraph (1) for 

25 any fiscal year— 


pbinns on DSKJLVW7X2PROD with BILLS
3 

•S 3490 IS

1 ‘‘(A) shall be deposited and credited as off2 setting collections to the account providing ap3 propriations to the Board of Governors of the 

4 Federal Reserve System; and 

5 ‘‘(B) shall not be collected for any fiscal 

6 year except to the extent provided in advance in 

7 appropriation Acts. 

8 ‘‘(3) LIMITATION.—This subsection shall only 

9 apply to the non-monetary policy related administra10 tive costs of the Board of Governors of the Federal 

11 Reserve System. 

12 ‘‘(b) DEFINITIONS.—For purposes of this section: 

13 ‘‘(1) MONETARY POLICY.—The term ‘monetary 

14 policy’ means a strategy for producing a generally 

15 acceptable exchange medium that supports the pro16 ductive employment of economic resources by reli17 ably serving as both a unit of account and store of 

18 value. 

19 ‘‘(2) NON-MONETARY POLICY RELATED ADMIN20 ISTRATIVE COSTS.—The term ‘non-monetary policy 

21 related administrative costs’ means administrative 

22 costs not related to the conduct of monetary policy, 

23 and includes— 

24 ‘‘(A) direct operating expenses for super25 vising and regulating entities supervised and 


pbinns on DSKJLVW7X2PROD with BILLS
4 

•S 3490 IS

1 regulated by the Board of Governors of the 

2 Federal Reserve System, including conducting 

3 examinations, conducting stress tests, commu4 nicating with the entities regarding supervisory 

5 matters and laws, and regulations; 

6 ‘‘(B) operating expenses for activities inte7 gral to carrying out supervisory and regulatory 

8 responsibilities, such as training staff in the su9 pervisory function, research and analysis func10 tions including library subscription services, and 

11 collecting and processing regulatory reports 

12 filed by supervised institutions; and 

13 ‘‘(C) support, overhead, and pension ex14 penses related to the items described under sub15 paragraphs (A) and (B).’’. 

16 (b) EFFECTIVE DATE.—The amendments made by 

17 this section shall apply with respect to expenses paid and 

18 fees collected on or after October 1, 2021. 

Æ 


pbinns on DSKJLVW7X2PROD with BILLS