Bringing the Discount Window into the 21st Century Act
House Passes Bill to Modernize Fed's Emergency Bank Lending System
Legislative Progress
Key Points
- Congress is requiring the Federal Reserve to overhaul the "discount window," which is the emergency system banks use to borrow money from the government when they run low on cash.
- The plan focuses on updating old technology and communication systems so the government can move money faster during a financial crisis or a sudden bank run caused by mobile banking apps.
- The Federal Reserve will look into expanding the hours this lending service is open to better match modern 24/7 banking and instant payment systems.
- A major goal is to reduce the embarrassment or "stigma" banks feel when borrowing from the government, which often stops them from asking for help until a small problem becomes a major crisis.
- The Federal Reserve must complete a full review of its lending programs within 240 days and create a specific plan to fix any technology or security weaknesses it finds.
- To ensure the work gets done, the Federal Reserve and its watchdog must send annual progress reports to Congress until all the modern updates are fully finished.
Impact Analysis
Personal Impact
Small banks and community financial institutions — many of which are locally owned small businesses — would benefit from a modernized emergency lending system at the Federal Reserve. Faster technology, expanded hours, and reduced stigma around borrowing from the discount window could help smaller banks survive sudden cash shortages without being forced into mergers or failures, which protects local communities that depend on them.
Broader Impacts
Milestones
Motion to reconsider laid on the table Agreed to without objection.
On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote.
The House fast-tracked this bill — limited debate, no amendments allowed, but needs two-thirds support to pass.
Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote.
The House fast-tracked this bill — limited debate, no amendments allowed, but needs two-thirds support to pass.
DEBATE - The House proceeded with forty minutes of debate on H.R. 3390.
Considered under suspension of the rules. (consideration: CR H2076-2078; text: CR H2076-2077)
The House fast-tracked this bill — limited debate, no amendments allowed, but needs two-thirds support to pass.
Votes
No votes have been recorded for this legislation yet.
Related News
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House Passes De La Cruz Bill to Modernize Federal Reserve Discount Window
The House passed the Bringing the Discount Window into the 21st Century Act, which directs the Fed to overhaul its emergency lending system. The bill addresses needed improvements for operations and technology to better serve institutions like community banks during financial stress.
De novos, deposit insurance reform find bipartisan momentum
The House Financial Services Committee advanced the Bringing the Discount Window into the 21st Century Act with a 48-1 vote. The legislation requires the Federal Reserve to review and improve the discount window's operations, a move supported by both parties to bolster financial stability.
Fed seeks input on discount window reforms
The Federal Reserve launched a request for information to improve its last-resort lending facility. The move comes as Congress pushes the Bringing the Discount Window into the 21st Century Act, focusing on operational practices like collateral pledging and communication infrastructure.
Source Information
Document Type
Congressional Bill
Official Title
Bringing the Discount Window into the 21st Century Act
Data Sources
Sponsor
Cosponsors
(2)Analysis generated by AI. Always verify with official sources.