This bill deletes a part of the Federal Reserve Act that deals with “earnings on balances.” In plain terms, it removes a rule that lets the Federal Reserve pay out earnings tied to certain account balances. The change is set to start 180 days after the bill becomes law.

Key points:

• Who is affected: The Federal Reserve and institutions with balances at the Fed.
• What changes: A paragraph in Section 19(b) of the Federal Reserve Act on earnings on balances is removed (paragraph 12).
• When: Takes effect 180 days after enactment.