Sponsors
The bill prioritizes winding down the Federal Reserve with some protections (employee pay, reporting, and asset proceeds to Treasury) but the move risks severe financial‑market disruption, increased taxpayer liabilities, concentrated fiscal/monetary power, and job losses.
All Americans (taxpayers) and Congress: The bill requires an 18‑month joint report to Congress on implementation and unresolved issues, increasing oversight and transparency of the wind‑down.
Federal employees: The Chairman must ensure payment of compensation and benefits accrued before positions are abolished, protecting earned pay and benefits during the wind‑down.
Taxpayers: Liquidation of Reserve assets directs net proceeds to the Treasury General Fund, which could raise federal receipts available to pay liabilities.
Middle‑class families, taxpayers, businesses and financial institutions: Abolishing the Federal Reserve and liquidating its assets would disrupt monetary policy and the broader financial system, risking higher interest rates, market volatility, reduced liquidity, and broad economic harm.
Financial institutions, investors and savers: Rapid liquidation aimed at maximizing returns could force fire sales that depress asset values, producing losses for banks, investors, and household savers and amplifying systemic stress.
Taxpayers: The Treasury would assume outstanding liabilities (including retirement and benefits), potentially increasing federal obligations and future taxpayer‑funded costs.
Based on analysis of 2 sections of legislative text.
Abolishes the Federal Reserve Board and all Federal Reserve banks after one year, transfers assets/liabilities to Treasury, orders liquidation, and requires a report to Congress.
Introduced March 5, 2025 by Mike Lee · Last progress March 5, 2025
Abolishes the Board of Governors of the Federal Reserve System and every Federal Reserve bank one year after the law takes effect, transfers responsibility for their assets and liabilities to the Secretary of the Treasury, and orders an orderly liquidation of Federal Reserve assets. During the one-year wind-down, the Board chair manages employees, pay/benefits that accrue, and assets/liabilities pending Treasury action; the OMB Director must liquidate assets to maximize returns to the Treasury and net proceeds are deposited to the Treasury General Fund. All outstanding liabilities, including retirement and benefit obligations, become liabilities of the Secretary of the Treasury and are payable from amounts in the Treasury General Fund (those deposited amounts are appropriated for that purpose). The Secretary and the OMB Director must submit a joint report to Congress 18 months after enactment describing implementation and unresolved issues.