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The bill increases transparency about Federal Reserve spending, staffing, supervisory priorities, and research focus—improving public and stakeholder oversight—but introduces compliance costs, a risk of exposing sensitive operational details, and delays before the transparency gains take effect.
Taxpayers and the public gain clearer, regular visibility into how the Federal Reserve and Reserve Banks spend money and staff functions because the Fed must disclose annual spending and FTEs by function and by Reserve Bank.
Banks and other supervised financial institutions can better understand the Fed's supervisory and rulemaking priorities because resource allocation to supervision and related activities will be disclosed.
Researchers, analysts, and policymakers receive clearer information on the Fed's research focus because the Fed must identify its top research areas by spending and FTEs, improving evidence-based oversight and policymaking.
Disclosure of detailed resource allocation (including international engagement and supervisory staffing) could reveal sensitive operational or supervisory strategies, potentially constraining policy flexibility and creating security risks for Fed operations.
The Fed and Reserve Banks will face additional compliance and reporting costs to prepare and publish the required breakdowns, costs that are likely borne by Reserve Banks and may be reflected in fees or other expenses affecting banks and taxpayers.
A two-year delayed effective date means taxpayers and oversight bodies must wait to see the transparency benefits, slowing accountability and any corrective responses to newly revealed information.
Based on analysis of 2 sections of legislative text.
Requires the Fed to disclose annual expenditures and FTEs by function for each Reserve Bank, top three research areas by spending and FTEs, and prior-year spending on each proposed/final rule or guidance.
Requires the Federal Reserve Board and each Federal Reserve Bank to include new, detailed transparency items in their annual report, starting two years after enactment. The reports must list annual expenditures and full-time-equivalent (FTE) employees by specific functional categories for each Reserve Bank, identify the top three research areas (by spending and FTEs) for the Board and each Reserve Bank, and report prior-year spending devoted to each proposed or finalized rule, guidance, and policy statement. The change focuses on increasing public disclosure of how money and staff time are allocated across supervisory, legal, operational, market, research, administrative, and international engagement functions. No new funding is authorized; the Fed must adjust its reporting and tracking systems to meet the new requirements.
Introduced May 1, 2025 by Roger Williams · Last progress May 1, 2025