SUPPORT Act of 2021
Bill: H.R.4895 | Sponsor: Rep. Omar, Ilhan (D-MN)
Policy area: Finance and Financial Sector

Summary:
Sending Unconditional Payments to People Overcoming Resistances to Triumph Act of 2021 or the SUPPORT Act of 2021
This bill establishes a guaranteed income pilot program and tax credit and provides for bank accounts supported by Federal Reserve banks.
The bill establishes the Office of Guaranteed Income Programs to carry out a five-year guaranteed income pilot program. The pilot program must provide grants through local governments and community development financial institutions for periodic cash payments to eligible individuals. An eligible program must provide cash payments that are not less than $50 per individual and are made on a biweekly, monthly, or quarterly basis.
Additionally, the bill establishes the Guaranteed Income Tax Credit, a refundable income tax credit for individual taxpayers equal to $14,400 plus $600 for each dependent. The amount is reduced for individuals whose adjusted gross income exceeds specified levels. A taxpayer may elect to receive this credit in advance in equal amounts throughout the year.
The bill also requires Federal Reserve member banks to provide bank accounts (FedAccounts) to residents and to businesses domiciled in the United States for purposes of holding digital dollar balances. These accounts must provide specified banking services, including debit cards, online banking, automatic bill pay, and automatic teller machines at U.S. postal facilities. These accounts may not charge fees or have balance requirements and must provide a specified interest rate.

To direct the Secretary of Treasury to establish a Federal office to 
  oversee local guaranteed income pilots and to implement a national 
           guaranteed income program, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Sending Unconditional Payments to 
People Overcoming Resistances to Triumph Act of 2021'' or the ``SUPPORT 
Act of 2021''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Secretary defined.
                  TITLE I--GUARANTEED INCOME PROGRAMS

Sec. 101. Definitions.
Sec. 102. Office of Guaranteed Income Programs.
Sec. 103. Guaranteed income pilot program.
                 TITLE II--GUARANTEED INCOME TAX CREDIT

Sec. 201. Establishment of the guaranteed income tax credit.
                         TITLE III--FEDACCOUNTS

Sec. 301. Creation and integration of FedAccounts.

SEC. 3. SECRETARY DEFINED.

    In this Act, the term ``Secretary'' means the Secretary of Treasury 
(or the Secretary's delegate).

                  TITLE I--GUARANTEED INCOME PROGRAMS

SEC. 101. DEFINITIONS.

    In this title:
            (1) Community development financial institution.--The term 
        ``community development financial institution'' has the meaning 
        given such term in section 103 of the Community Development 
        Banking and Financial Institutions Act of 1994 (12 U.S.C. 
        4702).
            (2) Director.--The term ``Director'' means the Director of 
        the Office of Guaranteed Income Programs established under 
        section 102.
            (3) Unit of general local government.--The term ``unit of 
        general local government'' has the meaning given such term in 
        section 102 of the Housing and Community Development Act of 
        1974 (42 U.S.C. 5302).

SEC. 102. OFFICE OF GUARANTEED INCOME PROGRAMS.

    (a) Establishment.--There is established an Office of Guaranteed 
Income Programs (in this section referred to as the ``Office'').
    (b) Director.--The Office shall be headed by a Director, who shall 
be appointed by the Secretary.
    (c) Duties.--The Director shall assist the Secretary in--
            (1) carrying out the pilot program established in section 
        103; and
            (2) implementing the Federal tax credit established in 
        title II.
    (d) Partnerships With Other Federal Agencies.--
            (1) In general.--The Secretary may consult with Federal 
        agencies to--
                    (A) establish the organizational structure and 
                functionality of the Office; and
                    (B) meet the purposes of this Act.
            (2) Specific duties of other federal agencies.--
                    (A) Department of housing and urban development.--
                In order to assist the Secretary the Secretary of 
                Housing and Urban Development shall provide 
                administrative expertise with respect to grantmaking to 
                units of general local government through the community 
                development block grant program under title I of the 
                Housing and Community Development Act of 1974 (42 
                U.S.C. 5301 et seq.).
                    (B) Department of health and human services.--The 
                Secretary of Health and Human Services shall provide to 
                the Secretary and the Director research consulting from 
                the Office of Planning, Research, and Evaluation and 
                such Office's experience with the Temporary Assistance 
                for Needy Families Program.
                    (C) Internal revenue service.--The Commissioner of 
                Internal Revenue shall provide to the Secretary access 
                to tax records to administer and analyze the program 
                under section 103 and to update the Secretary on 
                changes to the taxable income of an individual under 
                this title and title II.
                    (D) Social security administration.--The 
                Commissioner of Social Security shall provide to the 
                Secretary access to identifying records and addresses 
                to identify individuals under this title and title II 
                receiving supplemental security income benefits or 
                social security disability insurance benefits.
    (e) Data Sharing.--As determined necessary, the Secretary may work 
with other relevant Federal agencies for the purposes of sharing and 
updating personal identification information and consolidating a 
database of individuals who may receive cash payments under this title 
and title II.
    (f) National Economic Advisory Council.--
            (1) Establishment.--The Director shall establish within the 
        Office a National Economic Advisory Council to make 
        recommendations with respect to improving performance and 
        coordination of basic income pilot programs.
            (2) Membership.--The National Economic Advisory Council 
        shall be composed of 10 members as follows:
                    (A) The Director.
                    (B) The following members appointed by the 
                Director:
                            (i) One representative from a national 
                        nonprofit civil rights organization.
                            (ii) One representative from a national 
                        labor organization.
                            (iii) One representative from an economic 
                        research organization with expertise in cash-
                        transfer programs.
                            (iv) One representative from a community 
                        advocacy organization with expertise in cash-
                        transfer programs.
                            (v) One representative from a community 
                        development financial institution.
                            (vi) Two individuals eligible for cash 
                        payments under this title or title II.
                    (C) Two members appointed by the Secretary.
            (3) Recommendations.--The Council shall submit to the 
        Secretary and Congress annual recommendations relating to the 
        policies and regulations of the Office.

SEC. 103. GUARANTEED INCOME PILOT PROGRAM.

    (a) In General.--The Secretary shall implement a 5-year guaranteed 
income pilot program (in this section referred to as the ``Program'') 
to provide grants to eligible entities to assist in carrying out a 
qualifying pilot program.
    (b) Qualifying Pilot Program Defined.--In this section, the term 
``qualifying pilot program'' means a new or ongoing local basic income 
pilot program that provides to eligible individuals cash payments that 
are--
            (1) not less than $50 per such individual per payment; and
            (2) made on a bi-weekly, monthly, or quarterly basis.
    (c) Application.--A grant under this section may be made only to an 
eligible entity that submits to the Secretary an application containing 
such information as the Secretary may require, including--
            (1) a description of a qualifying pilot program to be 
        carried out using grant amounts; and
            (2) an explanation of the need for such program.
    (d) Selection.--
            (1) In general.--The Secretary, in consultation with the 
        Director, shall select not less than 500 eligible entities to 
        participate in the Program based on criteria that the Secretary 
        shall establish.
            (2) Priority.--The Secretary, in approving applications 
        under this section, shall give priority to applications 
        submitted by--
                    (A) units of general local government that have 
                never established or do not have an existing program to 
                provide a basic minimum income for individuals;
                    (B) units of general local government that will 
                carry out a qualifying pilot program in low-income 
                geographic areas or persistent poverty counties;
                    (C) community development financial institutions 
                that are minority-owned; and
                    (D) community development financial institutions 
                that serve or are based in low-income geographic areas 
                or persistent poverty counties.
    (e) Local Evaluations.--Eligible entities may use grant amounts to 
cover the costs of evaluations, similar to the requirements in 
subsection (g), through working with partners, such as for-profit, 
nonprofit, public, or quasi-governmental entities, to design, text, and 
report on their income pilots.
    (f) Disregard of Cash Payments for Purposes of All Federal and 
Federally Assisted Programs.--Notwithstanding any other provision of 
law, any payment made to a participating individual under this section 
shall not be taken into account as income or resources for the period 
of 12 months from receipt, for purposes of determining the eligibility 
of such individual for benefits or assistance (or the amount or extent 
of benefits or assistance) under any Federal program or any State or 
local program financed in whole or in part with Federal funds.
    (g) External Partners.--
            (1) Selection.--The Secretary, in consultation with the 
        Director, shall select no more than three external partners to 
        provide assistance with the design, administration, and 
        evaluation of the Program.
            (2) Qualifications.--An organization selected to be an 
        external partner shall--
                    (A) have demonstrated experience in--
                            (i) studying or implementing cash-transfer 
                        programs;
                            (ii) executing a mixed-methods study that 
                        incorporates an experiment or quasi-experiment 
                        design; and
                            (iii) holding highly ethical research 
                        designs with a consistent track record of 
                        approval from institutional review boards; and
                    (B) have no campaign activity as a research 
                organization described under section 501(c)(3) of the 
                Internal Revenue Code of 1986.
            (3) Confidentiality.--An external partner, and any employee 
        of an external partner, shall be treated as a Federal employee 
        for purposes of section 6103 of the Internal Revenue Code of 
        1986.
            (4) Data collection.--An external partner shall work with 
        the Director to collect and record data from eligible entities 
        and participating individuals, as necessary, to complete the 
        study and reports required under subsection (g), and to conduct 
        any additional research as the Secretary determines necessary.
    (h) Reporting.--
            (1) Task force.--The Secretary, in consultation with the 
        Director and external partners, may establish a task force to 
        study the results of the qualifying pilot programs funded with 
        grants under the Program.
            (2) Information gathering.--An eligible entity providing 
        cash payments to an eligible individual through a qualifying 
        pilot program, funded through the Program, shall collect, 
        maintain a record of, and promptly submit such record to the 
        task force the following information:
                    (A) If the eligible entity is a community 
                development financial institution, whether the entity 
                itself is a minority-owned, women-owned, or veteran-
                owned entity.
                    (B) Demographic information of participating 
                individuals, including race and ethnicity, gender, 
                disability status, housing status, family composition, 
                and income level.
            (3) Evaluation.--Of the amounts made available to carry out 
        this section, the Secretary, acting through the Director, may 
        use such amounts as may be necessary to evaluate the 
        effectiveness of qualifying pilot programs funded through the 
        Program, using a methodology that--
                    (A) includes a random assignment whenever feasible, 
                or other research methods that allow for the strongest 
                possible casual inferences when a random assignment is 
                not feasible; and
                    (B) generates evidence on the impact of specific 
                qualifying pilot programs and protocols.
            (4) Interim report.--Not later than 24 months after cash 
        payments are initially made to participating individuals, the 
        Secretary, in consultation with the Director and external 
        partners, shall issue an interim report on the Program to 
        Congress, including the following information:
                    (A) For each qualifying pilot program, the total 
                number of participating individuals disaggregated by 
                race and ethnicity, gender, disability status, housing 
                status, family composition, and income and assets 
                (including income level as a percentage of the Federal 
                poverty line).
                    (B) With respect to each participating individual, 
                to the extent applicable--
                            (i) such individual's employment type and 
                        job status;
                            (ii) the total amount of cash payments 
                        received by such individual; and
                            (iii) such individual's zip code.
                    (C) Any other information that the Secretary 
                determines to be necessary.
            (5) Final report.--Not later than 12 months after the 
        conclusion of the Program, the Secretary, in consultation with 
        the Director and the external partners, shall issue a final 
        report on the Program to Congress, which shall include updated 
        disclosures and calculations of the information provided in the 
        interim report under paragraph (4), and a final assessment 
        comprised of--
                    (A) a quantitative and qualitative analysis of the 
                effects of the income subsidies provided under the 
                qualifying pilot programs on--
                            (i) financial outcomes of participating 
                        individuals;
                            (ii) the health and economic well-being of 
                        participating individuals; and
                            (iii) the social costs of poverty and 
                        income volatility, including connections with 
                        income fluctuation and health, education, 
                        employment, childcare, and other outcomes as 
                        determined appropriate by the Secretary; and
                    (B) recommendations by the Secretary on the 
                efficacy and operational pathways of expanding local 
                basic income subsidies into a Federal guaranteed income 
                program.
            (6) Public availability.--
                    (A) In general.--As soon as is practicable after 
                issuing each report under paragraphs (4) and (5), the 
                Secretary shall make all the information contained in 
                each such report publicly available.
                    (B) Confidentiality.--In making information 
                publicly available under subparagraph (A), the 
                Secretary shall withhold confidential information.
    (i) Rules and Guidance.--The Secretary, in consultation with the 
Director, shall issue any rules and guidance that are necessary to 
carry out this section, including establishing appropriate compliance 
and reporting requirements in addition to the reporting requirements 
under subsection (g).
    (j) Definitions.--In this section:
            (1) Eligible entity.--The term ``eligible entity'' means a 
        unit of general local government or a community development 
        financial institution.
            (2) Eligible individual.--The term ``eligible individual'' 
        means a resident of the United States.
            (3) Federal poverty line.--The term ``Federal poverty 
        line'' has the meaning given the term ``poverty line'' in 
        section 673 of the Omnibus Budget Reconciliation Act of 1981 
        (42 U.S.C. 9902).
            (4) Low-income geographic area.--The term ``low-income 
        geographic area'' has the meaning given such term in section 
        351 of the Small Business Investment Act of 1958 (15 U.S.C. 
        689).
            (5) Minority-owned.--With respect to a community 
        development financial institution, the term ``minority-owned'' 
        means a community development financial institution with--
                    (A) more than 50 percent of the ownership or 
                control held by not less than one minority; and
                    (B) more than 50 percent of the net profit or loss 
                of which accrues to not less than one minority.
            (6) Minority.--The term ``minority'' has the meaning given 
        such term in section 1204(c) of the Financial Institutions 
        Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 1811 
        note).
            (7) Participating individual.--The term ``participating 
        individual'' means an eligible individual that has received 
        cash payments under a qualifying pilot program funded through a 
        grant from the Program.
            (8) Persistent poverty county.--The term ``persistent 
        poverty county'' means any county that has had 20 percent or 
        more of its population living in poverty over the past 30 
        years, as measured by the most recent decennial census and the 
        most recent Small Area Income and Poverty Estimates of the 
        Bureau of the Census, as of the date of the enactment of this 
        Act.
    (k) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $500,000,000 for each of the 
fiscal years 2023 through 2027.

                 TITLE II--GUARANTEED INCOME TAX CREDIT

SEC. 201. ESTABLISHMENT OF THE GUARANTEED INCOME TAX CREDIT.

    (a) In General.--Subpart C of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by inserting after 
section 37 the following new section:

``SEC. 37A. GUARANTEED INCOME TAX CREDIT.

    ``(a) Allowance of Credit.--In the case of an eligible individual, 
there shall be allowed as a credit against the tax imposed by this 
subtitle for the taxable year an amount equal to--
            ``(1) $14,400, plus
            ``(2) $600 multiplied by the number of dependents (as 
        defined in section 152) under the age of 18 of the taxpayer.
    ``(b) Limitation Based on Adjusted Gross Income.--The amount of the 
credit allowable under subsection (a) shall be reduced (but not below 
zero) by five percent of so much of the taxpayer's adjusted gross 
income as exceeds--
            ``(1) $150,000 in the case of a joint return or a surviving 
        spouse (as defined in section 2(a)),
            ``(2) $112,500 in the case of a head of household, and
            ``(3) $75,000 in the case of a taxpayer not described in 
        paragraph (1) or (2).
    ``(c) Inflation Adjustments.--
            ``(1) In general.--In the case of any taxable year 
        beginning after 2028, each of the dollar amounts under 
        subsections (a) and (b) shall be increased by an amount equal 
        to--
                    ``(A) such dollar amount, multiplied by
                    ``(B) the cost-of-living adjustment determined 
                under section 1(f)(3) for the calendar year in which 
                the taxable year begins, determined by substituting 
                `calendar year 2027' for `calendar year 2016' in 
                subparagraph (A)(ii) thereof.
            ``(2) Rounding.--If any increase determined under paragraph 
        (1) is not a multiple of $50, such increase shall be rounded to 
        the nearest multiple of $50.
    ``(d) Eligible Individual.--For purposes of this section--
            ``(1) In general.--The term `eligible individual' means an 
        individual--
                    ``(A) who attained 18 years of age before the close 
                of the taxable year,
                    ``(B) whose principal place of abode was in the 
                United States for more than one-half of the taxable 
                year,
                    ``(C) who is not a dependent for whom a deduction 
                is allowable under section 151 to another taxpayer for 
                any taxable year beginning in the same calendar year as 
                such taxable year, and
                    ``(D) who did not claim the benefits of section 911 
                for the preceding taxable year.
            ``(2) Limitation on eligibility of nonresident aliens.--The 
        term `eligible individual' shall not include any individual who 
        is a nonresident alien individual for any portion of the 
        preceding taxable year, unless such individual is treated for 
        such taxable year as a resident of the United States for 
        purposes of this chapter by reason of an election under 
        subsection (g) or (h) of section 6013.
            ``(3) Identification number requirement.--No credit shall 
        be allowed under this section to an eligible individual who 
        does not include on the return of tax for the taxable year--
                    ``(A) such individual's taxpayer identification 
                number,
                    ``(B) if the individual was married during the 
                preceding taxable year (within the meaning of section 
                7703), the taxpayer identification number of such 
                individual's spouse, and
                    ``(C) taxpayer identification number of such 
                individual's dependents.
            ``(4) Treatment of military personnel stationed outside of 
        the united states.--For purposes of paragraph (1)(B), the 
        principal place of abode of a member of the Armed Forces of the 
        United States shall be treated as in the United States during 
        any period during which such member is stationed outside the 
        United States while serving on extended active duty with the 
        Armed Forces of the United States. For purposes of the 
        preceding sentence, the term `extended active duty' means any 
        period of active duty pursuant to a call or order to such duty 
        for a period in excess of 90 days or for an indefinite period.
    ``(e) Taxable Year Must Be Full Taxable Year.--Except in the case 
of a taxable year closed by reason of the death of the taxpayer, no 
credit shall be allowable under this section in the case of a taxable 
year covering a period of less than 12 months.
    ``(f) Restrictions on Taxpayer Who Improperly Claimed Credit in 
Prior Year.--Rules similar to subsection (k) of section 32 shall apply 
for purposes of this section.
    ``(g) Reconciliation of Credit and Advance Payments.--The amount of 
the credit allowed under this section for any taxable year shall be 
reduced (but not below zero) by the aggregate amount of any advance 
payments of such credit under section 7527B for such taxable year.''.
    (b) Advance Payment of Guaranteed Income Tax Credit.--Chapter 77 of 
the Internal Revenue Code of 1986 is amended by inserting after section 
7527A the following new section:

``SEC. 7527B. ADVANCE PAYMENT OF GUARANTEED INCOME TAX CREDIT.

    ``(a) In General.--The Secretary shall establish a program for 
making advance payments to eligible taxpayers which equal, in the 
aggregate during any calendar year, the annual advance amount 
determined with respect to such taxpayer for such calendar year. The 
advance payments made to such taxpayer for any calendar year shall be 
in equal amounts.
    ``(b) Eligible Taxpayer.--The term `eligible taxpayer' has the 
meaning given `eligible individual' in section 37A and such taxpayer 
has made an election under subsection (d).
    ``(c) Annual Advance Amount.--For the purposes of this section, the 
term `annual advance amount' means, with respect to an eligible 
taxpayer for any calendar year, an amount equal to the amount of credit 
which the Secretary has determined will be allowed to such taxpayer 
under section 37A for the taxpayer's taxable year beginning in such 
calendar year.
    ``(d) Election of Advance Payment.--
            ``(1) In general.--A taxpayer may elect to receive an 
        advance payment of the credit allowed under section 37A for any 
        taxable year--
                    ``(A) by including such election on a timely filed 
                return for the preceding taxable year, or
                    ``(B) through the online portal established in 
                paragraph (2).
            ``(2) Online portal.--The Secretary shall establish an 
        online portal which allows non-filing taxpayers to--
                    ``(A) elect to receive payments under this section, 
                and
                    ``(B) provide any information the Secretary 
                determines necessary.
    ``(e) Internal Revenue Service Notification.--The Internal Revenue 
Service shall take such steps as may be appropriate to ensure that 
taxpayers who are eligible to receive the credit under section 37A are 
aware of the availability of the advance payment of such credit under 
this section.
    ``(f) Authority.--The Secretary may prescribe such regulations or 
other guidance as may be appropriate or necessary for the purposes of 
carrying out this section.''.
    (c) Other Rules.--
            (1) Timing and manner of payments.--
                    (A) Timing.--The Secretary shall, subject to the 
                provisions of this title, refund or credit any 
                overpayment attributable to this section as rapidly as 
                possible.
                    (B) Alternate information.--For purposes of 
                disbursing refunds payable under this section, if an 
                individual eligible to receive a credit under section 
                37A (as added by subsection (a)) has not, as of any 
                applicable date, filed a tax return for the applicable 
                taxable year, the Secretary shall--
                            (i) use return information with respect to 
                        such individual for the taxable year preceding 
                        such applicable taxable year; or
                            (ii) in the case of an individual who has 
                        not filed a tax return for the applicable year 
                        or the taxable year described in clause (i), 
                        use any applicable information provided by 
                        relevant agencies.
                    (C) Coordination and notification.--For purposes of 
                subparagraph (B)(i), the Secretary shall--
                            (i) coordinate with the heads of relevant 
                        Federal agencies to receive applicable 
                        information with respect to any individuals who 
                        may be eligible to receive a refund payment 
                        pursuant to this section; and
                            (ii) establish an online portal that 
                        individuals described in paragraph (B) may use 
                        to report any information required, as 
                        determined by the Secretary, to determine the 
                        amount of any refund payments for which such 
                        individuals may be eligible, including methods 
                        specifically designed to identify and account 
                        for foster youth and individuals experiencing 
                        homelessness or housing insecurity.
                    (D) Delivery of payments.--Notwithstanding any 
                other provision of law, the Secretary may certify and 
                disburse refunds immediately payable under this 
                subsection--
                            (i) electronically to any account to which 
                        the payee authorized the delivery of a refund 
                        of taxes under this title or of a Federal 
                        payment (as defined in section 3332 of title 
                        31, United States Code); or
                            (ii) through such other means as are 
                        determined appropriate by the Secretary 
                        including through the use of mailed paper 
                        checks, stored value cards, and online payment 
                        systems including FedAccounts as established 
                        under section 301.
                    (E) Waiver of certain rules.--Notwithstanding 
                section 3325 of title 31, United States Code, or any 
                other provision of law, with respect to any payment of 
                a refund under this subsection, a disbursing official 
                in the executive branch of the United States Government 
                may modify payment information received from an officer 
                or employee described in section 3325(a)(1)(B) of such 
                title for the purpose of facilitating the accurate and 
                efficient delivery of such payment. Except in cases of 
                fraud or reckless neglect, no liability under sections 
                3325, 3527, 3528, or 2529 of title 31, United States 
                Code, shall be imposed with respect to payments made 
                under this subparagraph.
            (2) No interest.--No interest shall be allowed on any 
        overpayment attributable to a payment deemed made under this 
        section.
            (3) Notice to taxpayer.--Not later than 15 days after the 
        date on which the Secretary distributed any payment to a 
        taxpayer pursuant to this section, notice shall be sent by mail 
        to such taxpayer's last known address. Such notice shall 
        indicate the method by which such payment was made, the amount 
        of such payment, and a phone number or website portal for the 
        appropriate contact at the Internal Revenue Service to report 
        any failure to receive such payment.
            (4) Treatment of possessions.--Rules similar to the rules 
        of subsection (c) of section 2201 of the CARES Act (Public Law 
        116-136) shall apply for the purposes of section 37A of such 
        Code (as added by subsection (a)).
            (5) Exception from reduction or offset.--Any credit or 
        refund allowed or made to any individual by reason of section 
        37A of the Internal Revenue Code of 1986 (as added by 
        subsection (a)) or by reason of paragraph (1) of this 
        subsection shall not be--
                    (A) subject to reduction or offset pursuant to 
                section 3716 or 3720A of title 31, United States Code;
                    (B) subject to reduction or offset pursuant to 
                subsection (c), (d), (e), or (f) of section 6402 of the 
                Internal Revenue Code of 1986; or
                    (C) reduced or offset by other assessed Federal 
                taxes that would otherwise be subject to levy or 
                collection.
            (6) Prohibition on garnishment.--
                    (A) Definitions.--In this paragraph, the terms 
                ``financial institution'', ``freeze'', ``garnish'', and 
                ``garnishment order'' have the meanings given the terms 
                in section 212.3 of title 31, Code of Federal 
                Regulations, as in effect on the date of enactment of 
                this Act.
                    (B) Prohibition.--No financial institution may 
                garnish or freeze any portion of a refund made by any 
                debtor by reason of section 37A of the Internal Revenue 
                Code of 1986 (as added by subsection (a)) or by reason 
                of paragraph (1) pursuant to a garnishment order.
            (7) Waiver of fees by insured depository institutions.--No 
        insured depository institution, as defined in section 3 of the 
        Federal Deposit Insurance Act (12 U.S.C. 1813), may impose a 
        fee on a person for cashing any check for a refund payable 
        under section 37A of the Internal Revenue Code of 1986 (as 
        added by subsection (a)).
            (8) Public awareness campaign.--Rules similar to the rules 
        of subsection (e) of section 2201 of the CARES Act shall apply 
        for the purposes of section 37A of such Code (as added by 
        subsection (a)).
            (9) Regulations.--The Secretary shall prescribe such 
        regulations or other guidance as may be necessary to carry out 
        the purposes of this section, including any such measures are 
        deemed appropriate to avoid allowing duplicative payments to a 
        taxpayer.
    (d) Conforming Amendments.--
            (1) Section 6211(b)(4)(A) of the Internal Revenue Code of 
        1986 is amended by inserting ``37A,'' after ``36B,''.
            (2) Section 6213(g)(2) of such Code is amended--
                    (A) in subparagraph (F), by inserting ``or section 
                37A'' after ``credit)'';
                    (B) in subparagraph (G), by inserting ``or 37A'' 
                after ``section 32'';
                    (C) by amending subparagraph (K) to read as 
                follows:
                    ``(K) an omission of information required by 
                section 32(k)(2) or 36(e) or an entry on the return 
                claiming--
                            ``(i) the credit under section 32 for a 
                        taxable year for which the credit is disallowed 
                        under subsection (k)(1) thereof, or
                            ``(ii) the credit under section 37A for a 
                        taxable year for which the credit is disallowed 
                        under subsection (d) thereof,''; and
                    (D) in subparagraph (L), by ``37A,'' after ``32,''.
            (3) The table of sections for subpart C of part IV of 
        subchapter A of chapter 1 of such Code is amended by inserting 
        after the item relating to section 37 the following:

``Sec. 37A. Guaranteed income tax credit.''.
            (4) The table of sections for chapter 77 of such Code is 
        amended by inserting after the item relating to section 7527A 
        the following:

``Sec. 7527B. Advance payment of guaranteed income tax credit.''.
    (e) Effective Date.--The amendments made by this section shall 
apply to the taxable years beginning after January 1, 2027.

                         TITLE III--FEDACCOUNTS

SEC. 301. CREATION AND INTEGRATION OF FEDACCOUNTS.

    (a) Definitions.--In this section:
            (1) Digital dollars.--The term ``digital dollars'' means 
        dollar balances consisting of digital ledger entries recorded 
        as liabilities in the accounts of any Federal Reserve bank.
            (2) Fedaccount.--The term ``FedAccount'' means a personal, 
        no-fee central bank account supported by a Federal Reserve bank 
        for any eligible individuals or on behalf of any person for the 
        purpose of holding digital dollar balances.
            (3) Member bank.--The term ``member bank'' means any 
        national bank, State bank, or bank or trust company that is a 
        member of a Federal Reserve bank.
            (4) Pass-through fedaccount.--The term ``pass-through 
        FedAccount'' means a FedAccount maintained by a member bank on 
        behalf of any person, entitling that person to a pro rata share 
        of a pooled reserve balance that the member bank maintains at 
        any Federal Reserve bank.
            (5) Postal retail facility.--The term ``postal retail 
        facility''--
                    (A) means a post office, post office branch, post 
                office classified station, or other facility that is 
                operated by the Postal Service, the primary function of 
                which is to provide retail postal services; and
                    (B) does not include a contractor-operated facility 
                offering postal services.
            (6) Postal service.--The term ``Postal Service'' means the 
        United States Postal Service.
    (b) Authority and Mandate for Federal Reserve Banks To Establish 
and Maintain FedAccounts for the General Public.--
            (1) Authorization.--Subject to restrictions, limitations, 
        and regulations that may be imposed by the Board of Governors 
        of the Federal Reserve System, a Federal Reserve bank shall 
        maintain FedAccounts.
            (2) Mandate.--Not later than January 1, 2027, a Federal 
        Reserve bank shall make available FedAccounts to--
                    (A) residents of the United States; and
                    (B) businesses domiciled in the United States.
            (3) Terms of fedaccounts.--FedAccounts--
                    (A) shall not be subject to any account fees, 
                minimum balances, or maximum balances, and shall pay 
                interest at a rate not below the greater of the rate of 
                interest on required reserves and the rate of interest 
                on excess reserves;
                    (B) shall provide debit cards, online account 
                access, automatic bill-pay, mobile banking, customer 
                service and other such services as the Board of 
                Governors of the Federal Reserve System determines 
                appropriate in the public interest, provided that 
                FedAccounts shall not include overdraft coverage;
                    (C) shall provide access to automatic teller 
                machines to be maintained on behalf of the Board of 
                Governors of the Postal Service at postal retail 
                facilities;
                    (D) shall be branded in all account statements, 
                marketing materials, and other communications as 
                ``FedAccounts'' maintained by the Federal Reserve bank 
                on behalf of the United States of America;
                    (E) may not be closed or restricted on the basis of 
                profitability considerations; and
                    (F) shall provide account holders with reasonable 
                protections against losses caused by fraud or security 
                breaches.
            (4) Bank secrecy act.--In establishing and maintaining 
        FedAccounts, each Federal Reserve shall comply with--
                    (A) section 21 of the Federal Deposit Insurance Act 
                (12 U.S.C. 1829b);
                    (B) chapter 2 of title I of Public Law 91-508 (12 
                U.S.C. 1951 et seq.); and
                    (C) subchapter II of chapter 53 of title 31, United 
                States Code.
            (5) Privacy.--
                    (A) Fedaccounts.--Section 552a of title 5, United 
                States Code (commonly known as the Privacy Act of 
                1974), shall apply to FedAccounts.
                    (B) Federal reserve banks.--The privacy obligations 
                applicable to each Federal Reserve bank and its 
                employees, including with respect to criminal and civil 
                penalties, shall mirror those applicable to Federal tax 
                returns under sections 6103, 7213(a)(1), 7213A, and 
                7431 of the Internal Revenue Code of 1986.
            (6) Regulations.--The Board of Governors of the Federal 
        Reserve, in consultation with the Secretary, shall promulgate 
        regulations in order to carry out this subsection.
    (c) Authority and Mandate for Member Banks, State Nonmember Banks 
and Credit Unions To Offer and Maintain Pass-Through FedAccounts.--
            (1) Obligations of member banks.--
                    (A) In general.--Member banks shall open and 
                maintain pass-through FedAccounts for all interested 
                persons who elect to deposit funds into pass-through 
                FedAccounts, including persons eligible to receive 
                guaranteed income tax credit payments from the United 
                States pursuant to section 301 of this Act.
                    (B) Maintenance of assets.--
                            (i) In general.--Each member bank shall 
                        establish and maintain a separate legal entity 
                        for the exclusive purpose of holding all assets 
                        and maintaining all liabilities associated with 
                        pass-through FedAccounts.
                            (ii) Contents.--The assets of any entity 
                        described in clause (i) shall consist 
                        exclusively of a balance maintained in a master 
                        account at a Federal Reserve bank, and the 
                        liabilities or obligations of the entity shall 
                        consist exclusively of an equal quantity of 
                        balances maintained by holders of pass-through 
                        FedAccounts.
                            (iii) Capital or liquidity regulation.--The 
                        assets and liabilities of any legal entity 
                        described in clause (i) shall not be deemed 
                        assets or liabilities of the member bank or its 
                        affiliates for the purposes of any capital or 
                        liquidity regulation promulgated by Federal or 
                        State banking authorities.
                            (iv) Online application requirement for 
                        large banks.--Member banks with total 
                        consolidated assets greater than 
                        $10,000,000,000 shall promptly offer 
                        application, through online or telephonic 
                        means, for pass-through FedAccounts.
            (2) Terms of pass-through fedaccounts.--Pass-through 
        FedAccounts offered by member banks--
                    (A) shall not be subject to any account fees, 
                minimum balances, or maximum balances, and shall pay 
                interest at a rate not below the greater of the rate of 
                interest on required reserves and the rate of interest 
                on excess reserves;
                    (B) shall provide functionality and service levels 
                no less favorable than those that the member bank 
                offers for its existing transaction accounts, including 
                with respect to debit cards, automated teller machines, 
                online account access, automatic bill pay, mobile 
                banking, customer service and such other services as 
                the Board of Governors of the Federal Reserve System 
                determines appropriate in the public interest, provided 
                that FedAccounts shall not include overdraft coverage;
                    (C) shall be prominently branded in all account 
                statements, marketing materials, and other 
                communications as ``pass-through FedAccounts'' 
                maintained by the member bank on behalf of the Federal 
                Reserve;
                    (D) may not be closed or restricted by the bank on 
                the basis of profitability considerations; and
                    (E) shall provide account holders with reasonable 
                protection against losses caused by fraud or security 
                breaches.
            (3) Reimbursement for costs at member banks.--
                    (A) In general.--Each member bank with total 
                consolidated assets of not greater than $10,000,000,000 
                shall be reimbursed each calendar quarter by the 
                relevant Federal Reserve bank for the operational costs 
                incurred by the member bank in offering pass-through 
                FedAccounts.
                    (B) Regulations.--The Board of Governors of the 
                Federal Reserve System shall promulgate such 
                regulations as necessary to carry out this subsection.
            (4) Obligations of state nonmember banks and credit 
        unions.--
                    (A) In general.--The Federal Reserve banks shall 
                permit State nonmember banks and credit unions to open 
                master accounts for the exclusive purpose of offering 
                pass-through FedAccounts with the separate entity 
                structure described in paragraph (1), if the pass-
                through FedAccount complies with the terms set forth in 
                paragraph (2).
                    (B) Reimbursement.--Each State nonmember bank or 
                credit union electing to offer pass-through FedAccounts 
                shall be entitled to cost reimbursement in accordance 
                with paragraph (3).
            (5) Authority of the board.--Member banks shall be subject 
        to such regulations and obligations as may be imposed by the 
        Board of Governors of the Federal Reserve System in connection 
        with maintaining pass-through FedAccounts.
    (d) Limited Branches.--In areas where access to physical member 
bank branches is limited, including in low- or moderate-income 
geographies, designated disaster areas, distressed or underserved non-
metropolitan middle-income geographies, as designated by the Federal 
Financial Institutions Examination Council, Federal Reserve banks may 
partner with postal retail facilities to ensure access and availability 
to application and account services for all residents and citizens of 
the United States and to businesses domiciled in the United States.
    (e) Coordination of FedAccounts and Postal Banking.--The Board of 
Governors of the Federal Reserve System, after consultation with the 
Postermaster General, shall work to improve public banking options to 
all individuals, and specifically making sure that payments from the 
guaranteed income tax credit are able to reach the most people in a 
timely manner by expanding such financial services to the unbanked and 
underbanked.
    (f) Annual Reporting.--The Comptroller General of the United 
States, in consultation with the Secretary, shall submit to Congress an 
annual report that includes the demographics, number of participants, 
and average balances and uses for all the new products and services 
established under this section.
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