Sponsors (26)
The bill streamlines and centralizes federal insurance functions under the Treasury/Secretary—producing modest efficiency and clearer authority for some regulators—while removing a dedicated insurance office and statutory insurance representation, which risks losing specialized expertise, consumer advocacy, and coordinated oversight.
Federal coordination and interagency routing of insurance-related functions is simplified by consolidating the Federal Insurance Office's references and functions into the Secretary of the Treasury, potentially improving efficiency and reducing duplication.
State regulators and the Board of Governors gain clearer central authority over initiating and consulting on certain systemic-risk processes, which may streamline systemic-risk responses and decision-making.
Taxpayers may realize modest federal administrative cost savings from eliminating the standalone Federal Insurance Office and its Director position.
States, consumers, insurers, and other insurance stakeholders lose a dedicated federal office that coordinated insurance policy, monitored regulation, and provided consumer-protection advocacy, reducing federal insurance expertise and targeted oversight.
Insurance industry stakeholders lose explicit statutory representation and an affirmative approval role in some Financial Stability Oversight Council (FSOC) systemic-risk actions, reducing insurance-focused input into systemic-risk decisions.
Consolidating functions to the Secretary of the Treasury centralizes authority and could reduce transparency, specialized independence, and accountability for insurance matters.
Based on analysis of 3 sections of legislative text.
Eliminates the Federal Insurance Office, removes its statutory references, shifts some roles to the Treasury Secretary, and changes FSOC information‑sharing and initiation rules.
Introduced January 23, 2025 by Troy Downing · Last progress January 23, 2025
Eliminates the Federal Insurance Office (FIO) in the Department of the Treasury, removes its statutory authorizing text, and transfers or relabels several FIO references and roles to the Secretary of the Treasury. It also changes how the Financial Stability Oversight Council (FSOC) coordinates with and collects information from entities by removing FIO as an explicit participant and narrows an FSOC initiation rule to be "on the initiative of the Board of Governors."