H.R. 3390

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3390 Referred in Senate (RFS)]

<DOC>
119th CONGRESS
2d Session
H. R. 3390

_______________________________________________________________________

IN THE SENATE OF THE UNITED STATES

February 11, 2026

Received; read twice and referred to the Committee on Banking, 
Housing, and Urban Affairs

_______________________________________________________________________

AN ACT

To amend the Federal Reserve Act to require the Board of Governors of 
the Federal Reserve System to carry out a review of discount window 
operations and to implement improvements to such operations, and for 
other purposes.

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Bringing the Discount Window into 
the 21st Century Act''.

SEC. 2. REVIEW OF DISCOUNT WINDOW OPERATIONS.

Section 10 of the Federal Reserve Act (12 U.S.C. 241 et seq.) is 
amended--
(1) by redesignating paragraph (12) as paragraph (11); and
(2) by adding at the end the following:
``(12) Review of discount window operations.--
``(A) In general.--Not later than 60 days after the 
date of enactment of this paragraph, the Board of 
Governors shall commence a review of the discount 
window lending programs of the Federal reserve banks 
(the `discount window'), and shall complete such review 
not later than 240 days after the date of enactment of 
this paragraph.
``(B) Contents.--The review required by 
subparagraph (A) shall include a consideration of--
``(i) the effectiveness of the discount 
window in providing liquidity to financial 
institutions, including in times of financial 
stress;
``(ii) whether the technology 
infrastructure, including means of 
communications, are sufficient to support the 
timely provision of liquidity, including in 
times of financial stress;
``(iii) the effectiveness of cybersecurity 
measures implemented with respect to discount 
window operations;
``(iv) the effectiveness of communications 
between Federal reserve banks, financial 
institutions, the Board of Governors, the 
Federal Deposit Insurance Corporation, the 
Comptroller of the Currency, and the Secretary 
of the Treasury regarding discount window 
operations;
``(v) the effectiveness of the Board of 
Governors in providing oversight of the 
discount window and in ensuring consistent 
access to the discount window across the 
Federal Reserve System;
``(vi) how the discount window interacts 
with other providers of liquidity, including 
the Federal Home Loan Banks, during both normal 
operations and times of financial distress;
``(vii) the effectiveness of existing 
discount window operating hours and whether 
such hours should be expanded, taking into 
account the interaction between discount window 
operating hours and the operating hours of 
payment systems of the Federal reserve banks, 
such as the Fedwire Funds Service and FedNow 
Service;
``(viii) the impact of mobile banking and 
instant communications technology on depositor 
behavior and liquidity risk posed to financial 
institutions, including how the discount window 
can--
``(I) help financial institutions 
better respond to rapid liquidity 
shortfalls; and
``(II) prevent broader financial 
instability; and
``(ix) the effectiveness of the discount 
window in light of the stigma associated with 
its usage, ways to reduce such stigma, and ways 
to improve access, operational efficiency, 
transparency, and timeliness of the process for 
financial institutions seeking advances, 
including on the pricing and other terms of 
such advances.
``(C) Remediation plan.--After the Board of 
Governors completes the review required by subparagraph 
(A), the Board of Governors, in consultation with the 
Federal reserve banks, shall--
``(i) identify deficiencies with the 
discount window and areas for enhancing 
discount window effectiveness; and
``(ii) develop a written plan to remediate 
the identified deficiencies and implement the 
identified enhancements, which shall include--
``(I) an identification of actions 
that will be taken to enhance discount 
window effectiveness and remediate 
identified deficiencies;
``(II) timelines and milestones for 
implementing the plan and measures to 
demonstrate how the implemented 
improvements will be maintained on an 
ongoing basis; and
``(III) measures of managing and 
controlling any deficiencies and 
current operations until the plan is 
implemented in full.
``(D) Report to congress on review and plan.--
``(i) In general.--Not later than 365 days 
after the date of enactment of this paragraph, 
the Board of Governors shall submit a report to 
the Committee on Financial Services of the 
House of Representatives and the Committee on 
Banking, Housing, and Urban Affairs of the 
Senate containing--
``(I) the findings of the review 
required by subparagraph (A); and
``(II) the remediation plan 
required by subparagraph (C).
``(ii) Consultation.--Before submitting the 
report required by clause (i), the Board of 
Governors shall--
``(I) provide a copy of the 
proposed report to the Comptroller of 
the Currency, the Federal Deposit 
Insurance Corporation, and the 
Secretary of the Treasury; and
``(II) provide the Comptroller of 
the Currency, the Federal Deposit 
Insurance Corporation, and the 
Secretary of the Treasury with an 
opportunity to provide feedback on the 
report.
``(iii) Testimony.--The Chairman of the 
Board of Governors shall, at the semi-annual 
hearing required under section 2B, testify with 
respect to the contents of the report required 
under this subparagraph.
``(E) Annual reports to congress.--
``(i) Reports by the board.--The Board of 
Governors shall submit an annual report to the 
Committee on Financial Services of the House of 
Representatives and the Committee on Banking, 
Housing, and Urban Affairs of the Senate 
containing a review of the effectiveness of 
discount window operations and a progress 
report on the actions taken to implement the 
identified enhancements described in 
subparagraph (C).
``(ii) Reports by the inspector general.--
The Inspector General of the Board of Governors 
of the Federal Reserve System and the Bureau of 
Consumer Financial Protection shall submit an 
annual report to the Committee on Financial 
Services of the House of Representatives and 
the Committee on Banking, Housing, and Urban 
Affairs of the Senate containing a report on 
the progress of the Board of Governors in 
implementing the remediation plan required by 
subparagraph (C).
``(F) Confidential report information.--Any report 
required under this paragraph may contain a 
confidential annex containing information that, if made 
public, could--
``(i) impact monetary policy, financial 
stability, or cybersecurity; or
``(ii) significantly endanger the financial 
stability of any financial institution.
``(G) Repeal.--This paragraph shall be repealed on 
the date on which the Board of Governors notifies the 
Congress and publishes on a public website of the Board 
of Governors that the remediation plan required under 
subparagraph (C) has been fully implemented.''.

Passed the House of Representatives February 9, 2026.

Attest:

KEVIN F. MCCUMBER,

Clerk.