Federal Reserve Board Abolition Act | ChamberLight
Bills · S 869
IN COMMITTEE· 119TH CONGRESS
Senate BillS 869Finance and Financial Sector
Federal Reserve Board Abolition Act
INTRO MAR 5· LAST ACTION MAR 5
READING
3MIN
COSPONSORS
0
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
This bill is incredibly significant because the Federal Reserve plays a crucial role in the U.S. economy, influencing everything from job growth and inflation to interest rates on mortgages and car loans. If the Federal Reserve is abolished, there would no longer be an independent body responsible for setting monetary policy, acting as a lender of last resort to banks during financial crises, or supervising the banking system.
Without the Federal Reserve, the U.S. Treasury Department would likely absorb many of its functions, which could lead to fundamental changes in how the government manages the money supply and responds to economic downturns. This could potentially introduce political pressures into monetary policy decisions that are currently shielded by the Fed's independence. Voters should care because such a drastic change could lead to increased economic instability, unpredictable interest rates, and a significantly different financial landscape for businesses and consumers alike.
KEY PROVISIONS
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PROVISION 01
Abolishes the Board of Governors of the Federal Reserve System and all Federal reserve banks within one year of the bill becoming law.
This provision completely dismantles the U.S. central banking system, eliminating its role in monetary policy, banking supervision, and financial stability.
PROVISION 02
Repeals the Federal Reserve Act, the foundational law that established and governs the Federal Reserve System.
This removes the legal framework for the Federal Reserve's existence and operations, requiring a new system or framework for the nation's financial and monetary affairs.
PROVISION 03
Requires the Chairman of the Board of Governors to manage the winding down of the Fed's affairs, including employee management and the initial handling of assets and liabilities, during the one-year dissolution period.
This ensures an orderly transition process for the institution's closure, attempting to manage employees and initial financial matters before full transfer.
PROVISION 04
Directs the Office of Management and Budget to liquidate all assets of the Federal Reserve and transfer the net proceeds to the U.S. Treasury.
This ensures that the financial holdings of the Federal Reserve are converted to cash and absorbed by the federal government, rather than being disbursed or left unmanaged.
PROVISION 05
Transfers all outstanding liabilities, including employee retirement and benefits, of the Federal Reserve to the Secretary of the Treasury.
This ensures that the federal government assumes responsibility for all financial obligations of the abolished Federal Reserve, preventing default on its debts.
This bill is incredibly significant because the Federal Reserve plays a crucial role in the U.S. economy, influencing everything from job growth and inflation to interest rates on mortgages and car loans. If the Federal Reserve is abolished, there would no longer be an independent body responsible for setting monetary policy, acting as a lender of last resort to banks during financial crises, or supervising the banking system.
Without the Federal Reserve, the U.S. Treasury Department would likely absorb many of its functions, which could lead to fundamental changes in how the government manages the money supply and responds to economic downturns. This could potentially introduce political pressures into monetary policy decisions that are currently shielded by the Fed's independence. Voters should care because such a drastic change could lead to increased economic instability, unpredictable interest rates, and a significantly different financial landscape for businesses and consumers alike.
KEY PROVISIONS
AI-extracted
high
Abolishes the Board of Governors of the Federal Reserve System and all Federal reserve banks within one year of the bill becoming law.
This provision completely dismantles the U.S. central banking system, eliminating its role in monetary policy, banking supervision, and financial stability.
high
Repeals the Federal Reserve Act, the foundational law that established and governs the Federal Reserve System.
This removes the legal framework for the Federal Reserve's existence and operations, requiring a new system or framework for the nation's financial and monetary affairs.
med
Requires the Chairman of the Board of Governors to manage the winding down of the Fed's affairs, including employee management and the initial handling of assets and liabilities, during the one-year dissolution period.
This ensures an orderly transition process for the institution's closure, attempting to manage employees and initial financial matters before full transfer.
med
Directs the Office of Management and Budget to liquidate all assets of the Federal Reserve and transfer the net proceeds to the U.S. Treasury.
This ensures that the financial holdings of the Federal Reserve are converted to cash and absorbed by the federal government, rather than being disbursed or left unmanaged.
high
Transfers all outstanding liabilities, including employee retirement and benefits, of the Federal Reserve to the Secretary of the Treasury.
This ensures that the federal government assumes responsibility for all financial obligations of the abolished Federal Reserve, preventing default on its debts.
Effective date for the abolition of the Board of Governors and Federal reserve banks, and repeal of the Federal Reserve Act.
End of the 18-month period beginning on the date of enactment
Submission of a joint report by the Secretary of the Treasury and Director of the Office of Management and Budget to Congress on implementation actions and unresolved issues.
Undetermined amount (sufficient to cover liabilities)
Payment of outstanding liabilities of the Board of Governors and Federal reserve banks
mandatory
Until all liabilities are satisfied
GLOSSARY
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Federal Reserve System
The central bank of the United States, responsible for conducting monetary policy, supervising and regulating banks, and maintaining financial stability.
Board of Governors of the Federal Reserve System
The main governing body of the Federal Reserve System, consisting of seven members appointed by the President and confirmed by the Senate.
Federal reserve banks
Twelve regional banks that, along with the Board of Governors, make up the Federal Reserve System. They carry out monetary policy, supervise local banks, and provide financial services to the U.S. government and banks.
Federal Reserve Act
The law passed in 1913 that created the Federal Reserve System and defined its structure and responsibilities.
Repeal
To cancel or withdraw a law or act, making it no longer valid.
Assets
Things of value owned by an individual or organization, such as money, property, or investments.
Liabilities
Financial obligations or debts owed by an individual or organization to others.
ACTION TIMELINE
2 EVENTS
MAR 5, 25
Introduced in Senate
INTROREFERRAL
MAR 5, 25
Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
