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Congress·Passed House·21 days ago

House Passes Bill to Modernize Fed's Emergency Bank Lending System

Also known as: Bringing the Discount Window into the 21st Century Act

Legislative Progress

✓ Filed
✓ Review
✓ House
Senate
President

Impact Analysis

Scores: 1 = low, 5 = highSentiment: -5 to +5 (net benefit)

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.
Economy Finance

Milestones

3 milestones13 actions
Feb 9, 2026House

Motion to reconsider laid on the table Agreed to without objection.

Feb 9, 2026House

On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote.

Feb 9, 2026

Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote.

Feb 9, 2026House

DEBATE - The House proceeded with forty minutes of debate on H.R. 3390.

Feb 9, 2026House

Considered under suspension of the rules. (consideration: CR H2076-2078; text: CR H2076-2077)

What Happens Next

Projected impacts based on AI analysis

Federal Reserve must complete its full review of the discount window lending system

The Fed will identify what's broken or outdated in how it lends emergency money to banks, including whether hours and technology need upgrading. This sets the stage for actual fixes.

Federal Reserve submits its review findings and remediation plan to Congress

Congress and the public will learn what specific improvements the Fed plans to make, including timelines. This creates accountability for modernizing the system.

Related News

5 articles
Texas Border Business·19 days ago

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.

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American Banker·7 months ago

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.

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American Banker·over 1 year ago

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.

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Source Information

Document Type

Congressional Bill

Official Title

Bringing the Discount Window into the 21st Century Act

Bill NumberHR 3390
Congress119th Congress
ChamberHouse of Representatives
Latest ActionMotion to reconsider laid on the table Agreed to without objection.

Sponsor

Cosponsors

(2)
R: 2

Analysis generated by AI. While we strive for accuracy, this should not be considered legal or professional advice. Always verify information with official government sources.