Federal Reserve Board Abolition Act

This bill would shut down the Federal Reserve System. One year after it becomes law, the Board of Governors and each Federal reserve bank would be abolished. It also aims to repeal the Federal Reserve Act.

During that year, the Fed Chair would wind things down: manage employees, pay any pay and benefits already earned, and handle the Fed’s assets and debts, with the Treasury’s approval. The Office of Management and Budget would sell off the Fed’s assets and, after paying valid claims and redeeming bank stock, send the remaining money to the Treasury’s General Fund. The Treasury would take over all remaining debts, including retiree benefits, and pay them using those funds. A joint report from Treasury and the Office of Management and Budget would be due 18 months after the bill becomes law, explaining what was done and what is still unfinished.

Key points

• Who is affected: The Board of Governors, Federal reserve banks, their employees, the U.S. Treasury, and the Office of Management and Budget.
• What changes: The Fed is abolished in one year; the Federal Reserve Act is repealed; assets are sold and proceeds go to the Treasury; Treasury assumes all remaining debts; a report is required at 18 months .
• When: Abolition takes effect one year after enactment; the report is due at 18 months.