Shutdown Guidance for Financial Institutions Act | ChamberLight
Bills · S 2995
IN COMMITTEE· 119TH CONGRESS
Senate BillS 2995Finance and Financial Sector
Shutdown Guidance for Financial Institutions Act
INTRO OCT 9· LAST ACTION OCT 9
READING
4MIN
COSPONSORS
6
READER REACTIONS0 TOTAL
NO VOTES YET · BE THE FIRST
Introduced only
LEGISLATIVE PROGRESS
STEP 2 / 8
Introduced
In Committee
Reported
Passed Senate
Passed House
Conference
To President
Became Law
WHAT THE BILL DOES
AI-written
Government shutdowns can create sudden and severe financial stress for hundreds of thousands of Americans, leading to missed payments on crucial expenses like rent, mortgages, and loans. This bill matters because it aims to reduce that burden by encouraging financial institutions to provide temporary relief, rather than leaving affected individuals and businesses to face potential foreclosures, repossessions, or damaged credit scores through no fault of their own.
If this bill becomes law, it could help prevent widespread financial instability during future shutdowns, offering a clearer path for those directly impacted to manage their debts. Without it, there's no official push for banks to be flexible, which could lead to more severe financial consequences for affected individuals and businesses, making it harder for them to recover once a shutdown ends.
KEY PROVISIONS
5AI-extracted
PROVISION 01
Requires federal financial regulators to issue guidance encouraging financial institutions to work with consumers and businesses affected by a shutdown.
This aims to create a consistent approach across the financial sector for assisting those financially impacted by government shutdowns.
PROVISION 02
The guidance must suggest considering loan modifications and extending new credit to help affected parties, consistent with responsible lending practices.
This provides specific tools and actions for financial institutions to offer relief to struggling customers.
PROVISION 03
The guidance must advise preventing adverse credit reporting for consumers who receive modified credit arrangements due to a shutdown.
This provision is crucial for protecting the creditworthiness of individuals who are financially impacted by a shutdown.
PROVISION 04
Federal financial regulators must issue a press release at the start of a shutdown to alert everyone to the guidance.
This ensures that affected individuals, businesses, and financial institutions are promptly aware of the available resources and recommendations.
PROVISION 05
Regulators must submit a post-shutdown report to Congress on the guidance's effectiveness and update the guidance if shortcomings are identified.
This ensures accountability and allows for continuous improvement of the support offered during future shutdowns.
Government shutdowns can create sudden and severe financial stress for hundreds of thousands of Americans, leading to missed payments on crucial expenses like rent, mortgages, and loans. This bill matters because it aims to reduce that burden by encouraging financial institutions to provide temporary relief, rather than leaving affected individuals and businesses to face potential foreclosures, repossessions, or damaged credit scores through no fault of their own.
If this bill becomes law, it could help prevent widespread financial instability during future shutdowns, offering a clearer path for those directly impacted to manage their debts. Without it, there's no official push for banks to be flexible, which could lead to more severe financial consequences for affected individuals and businesses, making it harder for them to recover once a shutdown ends.
KEY PROVISIONS
AI-extracted
high
Requires federal financial regulators to issue guidance encouraging financial institutions to work with consumers and businesses affected by a shutdown.
This aims to create a consistent approach across the financial sector for assisting those financially impacted by government shutdowns.
high
The guidance must suggest considering loan modifications and extending new credit to help affected parties, consistent with responsible lending practices.
This provides specific tools and actions for financial institutions to offer relief to struggling customers.
high
The guidance must advise preventing adverse credit reporting for consumers who receive modified credit arrangements due to a shutdown.
This provision is crucial for protecting the creditworthiness of individuals who are financially impacted by a shutdown.
med
Federal financial regulators must issue a press release at the start of a shutdown to alert everyone to the guidance.
This ensures that affected individuals, businesses, and financial institutions are promptly aware of the available resources and recommendations.
med
Regulators must submit a post-shutdown report to Congress on the guidance's effectiveness and update the guidance if shortcomings are identified.
This ensures accountability and allows for continuous improvement of the support offered during future shutdowns.
Not later than 180 days after the date of enactment of this Act
Federal financial regulators must issue shutdown guidance.
Not later than 24 hours after the start of a shutdown
Federal financial regulators must issue a press release about the guidance.
Not later than 90 days after the date on which a shutdown ends
Federal financial regulators must submit a post-shutdown report to Congress.
Not later than 180 days after the date on which the post-shutdown report is issued
Federal financial regulators must update the guidance if shortcomings are identified in the report.
GLOSSARY
AI-written
Federal financial regulators
Government agencies that supervise and regulate banks, credit unions, and other financial services to ensure they operate safely and fairly. This bill specifically names the Board of Governors of the Federal Reserve System, the Bureau of Consumer Financial Protection, the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the National Credit Union Administration.
Furloughed
A temporary leave from work without pay, often due to budget cuts or, in this context, a government shutdown.
Shutdown
A period of more than 24 hours where federal government operations are halted due to a lack of funding approval by Congress.
Federal contractor
A private company or individual that performs work or provides goods and services for the U.S. federal government under a contract.
Appropriations
Funds set aside by Congress for specific government departments, agencies, and programs to spend.
Continuing resolution
A temporary funding measure passed by Congress to keep the government operating when a full appropriations bill has not been enacted by the start of a new fiscal year.
Safe-and-sound lending practices
ACTION TIMELINE
2 EVENTS
OCT 9, 25
Introduced in Senate
INTROREFERRAL
OCT 9, 25
Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
Financial practices that aim to minimize risk for both the lender and the borrower, ensuring that loans are made responsibly and can be repaid without jeopardizing the stability of the financial institution.
Consumer reporting agencies
Companies (like Equifax, Experian, TransUnion) that collect and maintain consumer credit information and provide credit reports to businesses and individuals.
