IIB 
119TH CONGRESS 
2D SESSION 
H. R. 3390 
IN THE SENATE OF THE UNITED STATES 
FEBRUARY 11, 2026 
Received; read twice and referred to the Committee on Banking, Housing, and 
Urban Affairs 
AN ACT 
To amend the Federal Reserve Act to require the Board 
of Governors of the Federal Reserve System to carry 
out a review of discount window operations and to imple-
ment improvements to such operations, and for other 
purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Bringing the Discount 
Window into the 21st Century Act’’. 
SEC. 2. REVIEW OF DISCOUNT WINDOW OPERATIONS. 
Section 10 of the Federal Reserve Act (12 U.S.C. 241 
et seq.) is amended— 
(1) by redesignating paragraph (12) as para-
graph (11); and 
(2) by adding at the end the following: 
‘‘(12) REVIEW
OF
DISCOUNT
WINDOW
OPER-
ATIONS.— 
‘‘(A) IN
GENERAL.—Not later than 60 
days after the date of enactment of this para-
graph, the Board of Governors shall commence 
a review of the discount window lending pro-
grams of the Federal reserve banks (the ‘dis-
count window’), and shall complete such review 
not later than 240 days after the date of enact-
ment of this paragraph. 
‘‘(B) CONTENTS.—The review required by 
subparagraph (A) shall include a consideration 
of— 
‘‘(i) the effectiveness of the discount 
window in providing liquidity to financial 
institutions, including in times of financial 
stress; 
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‘‘(ii) whether the technology infra-
structure, including means of communica-
tions, are sufficient to support the timely 
provision of liquidity, including in times of 
financial stress; 
‘‘(iii) the effectiveness of cybersecurity 
measures implemented with respect to dis-
count window operations; 
‘‘(iv) the effectiveness of communica-
tions between Federal reserve banks, fi-
nancial institutions, the Board of Gov-
ernors, the Federal Deposit Insurance Cor-
poration, the Comptroller of the Currency, 
and the Secretary of the Treasury regard-
ing discount window operations; 
‘‘(v) the effectiveness of the Board of 
Governors in providing oversight of the 
discount window and in ensuring con-
sistent access to the discount window 
across the Federal Reserve System; 
‘‘(vi) how the discount window inter-
acts with other providers of liquidity, in-
cluding the Federal Home Loan Banks, 
during both normal operations and times 
of financial distress; 
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‘‘(vii) the effectiveness of existing dis-
count window operating hours and whether 
such hours should be expanded, taking into 
account the interaction between discount 
window operating hours and the operating 
hours of payment systems of the Federal 
reserve banks, such as the Fedwire Funds 
Service and FedNow Service; 
‘‘(viii) the impact of mobile banking 
and instant communications technology on 
depositor behavior and liquidity risk posed 
to financial institutions, including how the 
discount window can— 
‘‘(I) help financial institutions 
better respond to rapid liquidity short-
falls; and 
‘‘(II) prevent broader financial 
instability; and 
‘‘(ix) the effectiveness of the discount 
window in light of the stigma associated 
with its usage, ways to reduce such stigma, 
and ways to improve access, operational ef-
ficiency, transparency, and timeliness of 
the process for financial institutions seek-
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ing advances, including on the pricing and 
other terms of such advances. 
‘‘(C) 
REMEDIATION
PLAN.—After 
the 
Board of Governors completes the review re-
quired by subparagraph (A), the Board of Gov-
ernors, in consultation with the Federal reserve 
banks, shall— 
‘‘(i) identify deficiencies with the dis-
count window and areas for enhancing dis-
count window effectiveness; and 
‘‘(ii) develop a written plan to reme-
diate the identified deficiencies and imple-
ment the identified enhancements, which 
shall include— 
‘‘(I) an identification of actions 
that will be taken to enhance discount 
window effectiveness and remediate 
identified deficiencies; 
‘‘(II) timelines and milestones for 
implementing the plan and measures 
to demonstrate how the implemented 
improvements will be maintained on 
an ongoing basis; and 
‘‘(III) measures of managing and 
controlling any deficiencies and cur-
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rent operations until the plan is im-
plemented in full. 
‘‘(D) REPORT TO CONGRESS ON REVIEW 
AND PLAN.— 
‘‘(i) IN
GENERAL.—Not later than 
365 days after the date of enactment of 
this paragraph, the Board of Governors 
shall submit a report to the Committee on 
Financial Services of the House of Rep-
resentatives and the Committee on Bank-
ing, Housing, and Urban Affairs of the 
Senate containing— 
‘‘(I) the findings of the review re-
quired by subparagraph (A); and 
‘‘(II) the remediation plan re-
quired by subparagraph (C). 
‘‘(ii) CONSULTATION.—Before submit-
ting the report required by clause (i), the 
Board of Governors shall— 
‘‘(I) provide a copy of the pro-
posed report to the Comptroller of the 
Currency, the Federal Deposit Insur-
ance Corporation, and the Secretary 
of the Treasury; and 
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‘‘(II) provide the Comptroller of 
the Currency, the Federal Deposit In-
surance Corporation, and the Sec-
retary of the Treasury with an oppor-
tunity to provide feedback on the re-
port. 
‘‘(iii) TESTIMONY.—The Chairman of 
the Board of Governors shall, at the semi- 
annual hearing required under section 2B, 
testify with respect to the contents of the 
report required under this subparagraph. 
‘‘(E) ANNUAL REPORTS TO CONGRESS.— 
‘‘(i) REPORTS BY THE BOARD.—The 
Board of Governors shall submit an annual 
report to the Committee on Financial Serv-
ices of the House of Representatives and 
the Committee on Banking, Housing, and 
Urban Affairs of the Senate containing a 
review of the effectiveness of discount win-
dow operations and a progress report on 
the actions taken to implement the identi-
fied enhancements described in subpara-
graph (C). 
‘‘(ii) REPORTS
BY
THE
INSPECTOR 
GENERAL.—The Inspector General of the 
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Board of Governors of the Federal Reserve 
System and the Bureau of Consumer Fi-
nancial Protection shall submit an annual 
report to the Committee on Financial Serv-
ices of the House of Representatives and 
the Committee on Banking, Housing, and 
Urban Affairs of the Senate containing a 
report on the progress of the Board of 
Governors in implementing the remediation 
plan required by subparagraph (C). 
‘‘(F) CONFIDENTIAL
REPORT
INFORMA-
TION.—Any report required under this para-
graph may contain a confidential annex con-
taining information that, if made public, 
could— 
‘‘(i) impact monetary policy, financial 
stability, or cybersecurity; or 
‘‘(ii) significantly endanger the finan-
cial stability of any financial institution. 
‘‘(G) REPEAL.—This paragraph shall be 
repealed on the date on which the Board of 
Governors notifies the Congress and publishes 
on a public website of the Board of Governors 
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that the remediation plan required under sub-
paragraph (C) has been fully implemented.’’. 
Passed the House of Representatives February 9, 
2026. 
Attest: 
KEVIN F. MCCUMBER, 
Clerk. 
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