H.R. 8278

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8278 Reported in House (RH)]

<DOC>

Union Calendar No. 617
119th CONGRESS
2d Session
H. R. 8278

[Report No. 119-711]

To require certain supervisory agencies to assess their technological 
capabilities, and for other purposes.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

April 14, 2026

Mr. Stutzman (for himself and Mr. Foster) introduced the following 
bill; which was referred to the Committee on Financial Services

June 24, 2026

Reported with an amendment, committed to the Committee of the Whole 
House on the State of the Union, and ordered to be printed
[Strike out all after the enacting clause and insert the part printed 
in italic]
[For text of introduced bill, see copy of bill as introduced on April 
14, 2026]

_______________________________________________________________________

A BILL

To require certain supervisory agencies to assess their technological 
capabilities, 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 ``Fostering the Use of Technology to 
Uphold Regulatory Effectiveness in Supervision Act''.

SEC. 2. FINDINGS.

Congress finds the following:
(1) Banking regulators continue to examine and monitor 
depository institutions without sufficient access to real-time 
information.
(2) Risk surrounding technology procurement may present 
challenges for updating supervisory technology.
(3) To ensure that prudential supervision is effective and 
sustainable in the digital age, agencies must leverage new 
technologies to allow for the financial monitoring necessary to 
preserve a safe and sound banking system.
(4) New technological tools are also necessary in order for 
agencies to effectively fulfill mandates other than prudential 
supervision, including their mandates to assure consumer 
protection and monitor Bank Secrecy Act compliance.
(5) Agencies' reliance on outdated technology can create 
vulnerabilities for the financial system, through--
(A) difficulties in collecting, compiling, and 
analyzing relevant information about risks and 
noncompliance at supervised firms;
(B) reliance on information that is inaccurate, 
incomplete, or not timely;
(C) reliance on limited and outdated tools for data 
analysis;
(D) difficulties in using data to identify risk 
trends;
(E) difficulties in producing accurate and timely 
reports;
(F) inadequacy of cybersecurity safeguards; and
(G) failure to detect illegal activities.
(6) The rapid expansion of financial firms' use of 
artificial intelligence may generate opportunities to improve 
the financial system while also introducing a range of risks, 
making it essential that agencies be equipped with the 
technology, expertise, and skills needed to analyze these 
opportunities and potential risks.
(7) While agencies assess their supervisory capabilities on 
an ongoing basis, it is imperative that there be a unified goal 
of enhancing supervisory technologies that ensure effective and 
sustainable oversight.

SEC. 3. TECHNOLOGICAL CAPABILITIES AND PROCUREMENT PRACTICES 
ASSESSMENT.

(a) In General.--
(1) Technological capabilities assessment.--Each covered 
agency shall, not later than 180 days after the date of the 
enactment of this section, assess how existing technologies 
used by the covered agency pose challenges to the covered 
agency in conducting adequate, real-time supervisory 
assessments of entities over which the covered agency has 
supervisory authority. Such technologies include, as 
applicable--
(A) core information technology infrastructure;
(B) technologies used to supervise entities;
(C) technologies for monitoring general market 
risks using reported data and external data; and
(D) technologies for data collection, storage, 
processing, and security.
(2) Procurement practices assessment.--Each covered agency 
shall, not later than 180 days after the date of the enactment 
of this section--
(A) assess the procurement rules and protocols 
adhered to by such covered agency when such covered 
agency acquires or develops new technological systems; 
and
(B) identify any opportunities to further 
streamline procurement rules and protocols, including 
an assessment of the impact such rules or protocols 
have on the ability of the covered agency to test new 
technological systems, that are within the covered 
agency's authority to streamline.
(b) Report.--Not later than 18 months after the completion of the 
assessments required under subsection (a), and for every 5 years 
thereafter, the covered agencies shall coordinate and jointly submit to 
the Committee on Financial Services of the House of Representatives and 
the Committee on Banking, Housing, and Urban Affairs of the Senate, in 
a manner that does not pose a risk to the integrity or security of any 
technologies, systems, or capabilities of covered agencies, regulated 
entities, or market participants, a report that includes, as 
applicable, the following with respect to each covered agency:
(1) A general overview of hardware and software used for 
information gathering and advanced analytics during supervision 
activities, including categories of technology purchased from 
vendors and developed by the covered agency or contractors of 
the covered agency.
(2) A description of the procurement practices and 
protocols of the covered agency, including a description of--
(A) whether such processes are voluntarily adhered 
to or mandated; and
(B) any opportunities to further streamline 
procurement rules and protocols, including an 
assessment of the impact such rules or protocols have 
on the ability of the covered agency to test new 
technological systems.
(3) A general overview of the portion of the workforce of 
the covered agency that is engaged materially in technology 
development within the covered agency, including--
(A) an overview of the ability of the covered 
agency to recruit and retain appropriate technology 
experts; and
(B) a description of the degree to which the 
covered agency relies on contractors to design, 
develop, or deploy technology and perform technology-
related tasks, and a description of related risk 
management practices for contractors and third-party 
technologies.
(4) A general description of the processes used by the 
covered agency to obtain information from entities supervised 
by the covered agency and any impediments thereto, including 
regulatory obstacles.
(5) General information about market and technology trends 
and risks in the underlying regulated markets including, 
specific to the covered agency's jurisdiction--
(A) market developments influenced by the adoption 
of new technologies;
(B) the use of new technologies by supervised 
entities for compliance and risk management purposes;
(C) the impact of new technologies on the 
collection and analysis of data submitted to the 
covered agencies by supervised entities as required by 
regulation, including on data quality, 
interoperability, and standardization; and
(D) potential risks, including risks of illicit 
activity, related to new technologies.
(6) A general description of the ways in which the covered 
agency shares information or system access with other covered 
agencies and any impediments thereto, including regulatory 
obstacles.
(7) An estimate of the costs for supervised entities to 
modify systems to share data with covered agencies, as 
appropriate.
(8) A general description of any plans of the covered 
agency to implement future upgrades to the technology it uses 
to supervise entities, including--
(A) the anticipated timeline for any planned 
upgrades;
(B) the costs of any planned upgrades;
(C) any impediments to procuring relevant 
technologies;
(D) plans for hiring and training individuals in 
connection with technological upgrades;
(E) any aspects of any planned upgrades that should 
be addressed on an interagency basis;
(F) any anticipated challenges and opportunities 
associated with entities supervised by the covered 
agency adapting to the covered agency's reporting 
process, including--
(i) estimates of transition costs; and
(ii) estimates of any potential cost 
reductions; and
(G) as applicable, the covered agency's 
relationships with other covered agencies in their 
capacity as delegated examiners.
(c) Covered Agency Defined.--In this section, the term ``covered 
agency'' means the Board of Governors of the Federal Reserve System, 
the Bureau of Consumer Financial Protection, the Federal Deposit 
Insurance Corporation, the Department of the Treasury, including the 
Office of the Comptroller of the Currency and the Financial Crimes 
Enforcement Network, the Federal Housing Finance Agency, and the 
National Credit Union Administration.
Union Calendar No. 617

119th CONGRESS

2d Session

H. R. 8278

[Report No. 119-711]

_______________________________________________________________________

A BILL

To require certain supervisory agencies to assess their technological 
capabilities, and for other purposes.

_______________________________________________________________________

June 24, 2026

Reported with an amendment, committed to the Committee of the Whole 
House on the State of the Union, and ordered to be printed