Sponsors (4)
The bill consolidates insurance oversight into Treasury/Board structures to streamline procedures and reduce costs, but does so at the expense of an independent, insurance-focused office—raising risks to consumer advocacy, sector representation, transparency, and interagency checks.
Financial institutions, state regulators, and taxpayers will get faster, clearer Council-level regulatory initiation and fewer duplicative statutory references, which can speed regulatory responses and reduce interagency confusion.
Financial institutions will continue to be overseen because the Treasury Secretary retains insurance authorities, preserving continuity of insurance oversight despite eliminating the separate FIO structure.
Federal staffing and salary costs will be reduced by eliminating the Federal Insurance Office and its Director position, lowering federal administrative overhead.
Insurance consumers and market participants will lose specialized, independent insurance oversight and coordination previously provided by the Federal Insurance Office, which could weaken consumer protections and reduce focused market monitoring.
Taxpayers and state governments will face more concentrated decision-making as the Board of Governors or Treasury gain greater control, reducing interagency checks and broader stakeholder input on prudential standards.
Insurance stakeholders and market participants will lose formal FIO participation in Council/Board processes, diminishing insurance-sector representation in systemic-risk deliberations.
Based on analysis of 3 sections of legislative text.
Abolishes the Federal Insurance Office, removes its statutory references, and shifts its Council and coordination roles to the Treasury Secretary or the Federal Reserve Board.
Official title: Abolish the Federal Insurance Office of the Department of the Treasury, and for other purposes.
Introduced July 29, 2026 by Rafael Edward Cruz · Last progress July 29, 2026
Abolishes the Federal Insurance Office (FIO) inside the Department of the Treasury and eliminates the statutory Director position. It removes FIO references across Dodd-Frank and related statutory notes, and transfers certain initiation and reference roles previously assigned to FIO to the Secretary of the Treasury or the Board of Governors of the Federal Reserve, while preserving Treasury’s existing insurance authorities.