Sponsor
Richard Lynn Scott
Senator · R-FL
Senator · R-FL
The bill increases Fed transparency and constrains future balance-sheet expansion to limit perceived risks from large-scale monetary operations, but does so at the cost of reduced central-bank flexibility in crises, higher reserve-related costs for banks and customers, and added operational burdens on the Fed.
Taxpayers and the broader economy: the bill caps the Federal Reserve's total Reserve Bank assets at 10% of U.S. GDP (effective in 10 years), constraining future large-scale asset purchases and limiting expansion of the Fed's balance sheet.
Congress, taxpayers, and the public: the Fed must provide annual reports on (a) how many foreign‑owned banks received interest payments or used Fed lending facilities and (b) the Fed's plan and timeline to comply, giving Congress and the public new data and ongoing oversight.
Depository institutions: establishes a statutory minimum reserve requirement floor tied to March 25, 2020 levels, which raises the baseline reserves banks must hold compared with potentially lower future settings.
Taxpayers, workers, and borrowers: capping Fed assets at 10% of GDP could limit the Fed's ability to respond in severe recessions or financial crises, increasing the risk of deeper downturns, credit freezes, and job losses.
Financial institutions and short-term funding markets: eliminating the Overnight Reserve Repurchase Facility and barring similar tools removes a liquidity backstop, raising funding volatility and the risk of market disruption during short-term stress.
Middle-class families and small businesses: raising or fixing reserve requirement floors at March 25, 2020 levels could increase banks' costs, which may be passed on to consumers via higher fees or lending spreads.
Based on analysis of 2 sections of legislative text.
Limits Fed aggregate assets to 10% of GDP (effective in 10 years), restores reserve minimum to March 25, 2020 level, bans a repurchase facility, and requires new reporting.
Official title: Limit the total assets of Federal reserve banks, and for other purposes.
Introduced May 7, 2025 by Richard Lynn Scott · Last progress May 7, 2025
Requires new public reporting on Federal Reserve payments to foreign‑owned banks, restores a statutory floor for reserve requirements to the level in effect on March 25, 2020, caps the combined assets of all Federal Reserve Banks at 10% of U.S. GDP (taking effect 10 years after enactment), and orders elimination of the Overnight Reserve Repurchase Facility within one year while barring creation of a similar facility. The Board of Governors and each Reserve Bank must submit annual reports to Congress describing plans and timelines to comply with the law.