Sponsors (12)
The bill aims to liquidate the Federal Reserve and transfer its assets/liabilities to Treasury—potentially raising one‑time receipts and centralizing benefit payments—at the cost of removing an independent central bank, increasing market and policy risks, and exposing taxpayers and Fed employees to financial and benefit uncertainties.
Taxpayers could receive net proceeds from the Federal Reserve's asset liquidation, with those proceeds deposited into the Treasury General Fund (increasing federal receipts or reducing deficits).
Federal employees and retirees' benefit liabilities and payment authority would be consolidated under the Secretary of the Treasury, centralizing responsibility for retiree and employee benefits and payment administration.
Taxpayers and the financial system would lose an independent central bank: eliminating the Federal Reserve would transfer monetary-policy and lender-of-last-resort authority to the Treasury, risking politicized monetary decisions and destabilizing financial markets.
Rapid, one-year dissolution and expedited liquidation of Fed assets could disrupt markets, reduce asset values, and increase volatility, harming investors and financial institutions and lowering the amount ultimately available to Treasury.
If liquidation proceeds are insufficient to cover the Fed's liabilities, taxpayers could face direct costs as the Treasury (General Fund) would need to fund shortfalls.
Based on analysis of 2 sections of legislative text.
Abolishes the Federal Reserve Board and Reserve Banks after one year, liquidates assets to Treasury, and makes Treasury responsible for liabilities.
Official title: To abolish the Board of Governors of the Federal Reserve System and the Federal reserve banks, to repeal the Federal Reserve Act, and for other purposes.
Introduced March 5, 2025 by Thomas Massie · Last progress March 5, 2025
Abolishes the Board of Governors of the Federal Reserve System and all Federal Reserve Banks one year after the bill becomes law, directs an orderly wind‑down during that year, and requires liquidation of Federal Reserve assets with net proceeds transferred to the Treasury General Fund. The Secretary of the Treasury is made responsible for outstanding liabilities (including retirement and benefit obligations), and the Office of Management and Budget must carry out asset liquidation and transfer; the Chairman of the Fed retains narrowly limited authority during the dissolution period to manage employees and routine winding‑up actions. At 18 months after enactment the Secretary and the OMB Director must report to Congress on implementation and any unresolved issues. The measure shifts central banking functions and balance‑sheet items to the Treasury and terminates the Federal Reserve’s institutional existence after the one‑year wind‑down period.