Federal Reserve Regulatory Oversight Act

This bill would change how some parts of the Federal Reserve are funded. It says the Fed’s non-monetary work (the day-to-day administrative work that is not about setting interest rates or managing the money supply) must go through the normal yearly budget process in Congress. The Fed and the regional Federal Reserve Banks would then charge fees to pay the government back for that budget money, but only if Congress allows it ahead of time. These changes apply only to non-monetary administrative costs and do not cover monetary policy itself. The bill also defines “monetary policy” and makes clear the new rules do not touch those activities.

Key points:

• Who is affected: The Board of Governors of the Federal Reserve and the Federal Reserve Banks, for their non-monetary administrative costs.
• What changes: Congress would approve annual funding for those activities, and the Fed would collect fees to offset that funding, but only as allowed in advance by law.
• What’s not changing: Anything tied to monetary policy, like how the Fed manages the money supply, is not covered by these funding rules.
• When: The new rules would start for expenses paid and fees collected on or after October 1, 2025.