Sponsors (3)
Requires the Federal Reserve Board to review discount window operations, produce a remediation plan, consult other agencies, and deliver initial and annual reports to Congress until implementation is certified.
The bill increases transparency, oversight, and operational resilience to improve banks' access to Federal Reserve liquidity and protect depositors, but it imposes administrative costs, creates disclosure risks, and may push the Fed toward short-term remedies rather than long-term fixes.
Banks — including smaller and community banks — will get clearer remediation steps, timelines, and reduced stigma around discount window use, improving their access to Federal Reserve liquidity during stress and helping protect depositors and local communities.
Financial institutions and the public benefit from strengthened operational resilience because the legislation mandates improved cybersecurity and technology assessments that reduce the risk of payment disruptions or loss of access to liquidity.
Congress, taxpayers, and the public gain greater oversight and accountability through mandated reports, testimony, and Inspector General review of discount-window and liquidity arrangements.
Taxpayers (and/or Fed budgets) will bear additional administrative costs from preparing reviews, remediation plans, and ongoing reporting requirements.
Public reporting on sensitive discount-window operations creates disclosure risks that could harm financial-stability if confidential information is exposed or if transparency requirements are difficult to calibrate.
Mandatory deadlines and heightened public scrutiny could incentivize the Fed to favor short-term, visible fixes over longer-term structural improvements to liquidity provision and resiliency.
Based on analysis of 2 sections of legislative text.
Official title: Bringing the Discount Window into the 21st Century Act
Introduced May 14, 2025 by Monica De La Cruz · Last progress February 11, 2026
Requires the Federal Reserve Board to review how the Fed’s discount window lending operates and to prepare a remediation plan and regular reports to Congress. The law sets firm deadlines for the review, requires consultation with the OCC, FDIC, and Treasury, mandates annual progress reports and testimony, allows confidential annexes, and terminates the new reporting requirement once the remediation plan is fully implemented. Creates a temporary, time-limited oversight and reporting framework aimed at identifying and fixing operational, policy, or transparency issues with discount window lending and tracking implementation until completion.