Bringing the Discount Window into the 21st Century Act

This bill tells the Federal Reserve to review and modernize its “discount window,” which is the Fed’s backup way to quickly lend money to banks so they can keep serving customers, especially during stress. The Fed must start the review within 60 days and finish within 240 days. The review covers how well the program works in crises, whether the technology and cybersecurity are strong, and how well the Fed and others communicate during emergencies. It also looks at operating hours and whether they should expand to match payment systems like Fedwire and FedNow, how it works with other lenders such as the Federal Home Loan Banks, and ways to reduce the “stigma” that can stop banks from using it when needed.

After the review, the Fed must create a plan with clear steps and timelines to fix problems and improve the system, then report the findings and plan to Congress within a year and provide yearly progress updates. The Fed’s Inspector General and the CFPB’s Inspector General must also report each year on progress. Some sensitive details can be kept confidential to protect financial stability and cybersecurity. These requirements end once the plan is fully carried out and publicly announced .

• Who is affected: The Federal Reserve, banks and other financial institutions, and indirectly their customers and communities.
• What changes: A full review of the Fed’s backup lending program, with improvements to technology, cybersecurity, communication, operating hours, and access, plus a fix-it plan and annual reports to Congress .
• When: Review starts within 60 days, ends within 240 days; report to Congress within 1 year; annual updates after that; requirements end once the improvement plan is fully implemented and announced .