Sponsors (47)
The bill increases transparency and congressional oversight of Fed emergency programs—potentially strengthening financial‑stability oversight—but at the cost of greater scrutiny that may limit Fed independence, create administrative burdens, and risk exposing sensitive information if not handled carefully.
Taxpayers and the public gain substantially greater transparency into Federal Reserve emergency lending and monetary programs because the GAO will audit the Fed and report findings and recommendations to Congress within a year.
Federal and state lawmakers (and their staffs) will receive timelier, more detailed audit information to oversee Fed emergency programs and to propose legislative or policy fixes.
The bill clarifies and tightens statutory audit exemptions (amending cross‑references in 31 U.S.C. §714), reducing legal ambiguity about which Fed programs are auditable.
Federal Reserve officials and staff may face increased scrutiny that could constrain the Fed's operational independence and its ability to respond quickly in financial crises.
Detailed public disclosure of audit findings risks revealing sensitive information about emergency lending facilities, counterparties, or market interventions, which could harm markets if not carefully redacted.
Complying with and responding to audits will impose administrative costs and divert Federal Reserve staff time from core policy and market‑monitoring work.
Based on analysis of 2 sections of legislative text.
Requires a GAO audit of the Federal Reserve and narrows statutory audit-exempt language, with a GAO report to Congress after completion.
Requires the Government Accountability Office (GAO) to complete a full audit of the Board of Governors of the Federal Reserve System and the Federal Reserve banks within 12 months of enactment and to deliver a written report to Congress within 90 days after the audit is finished. It also amends federal statute to narrow and clarify which Federal Reserve programs remain exempt from GAO audit authority, including revising cross-references to prior audit-exempt language and redefining covered programs tied to emergency lending facilities under section 13(3).
Official title: To require a full audit of the Board of Governors of the Federal Reserve System and the Federal reserve banks by the Comptroller General of the United States, and for other purposes.
Introduced January 3, 2025 by Thomas Massie · Last progress January 3, 2025