Bill · S. 4585· Senate(119-S-4585)
Discount Window Preparedness Act
- Introduced
- 5/20/2026
- Last activity
- 5/20/2026 — Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- Sponsored by
- Mark Warner
- Cosponsors
- - 0 - 1
- Introduced
- In Committee
What this bill would do
The Discount Window Preparedness Act aims to amend the Federal Reserve Act to require depository institutions to test their ability to use the discount window. Under this bill, institutions must demonstrate they have the technical and operational capacity to borrow advances and maintain necessary collateral. Testing schedules are determined by asset size, with larger institutions testing quarterly and smaller ones semiannually. The bill also directs federal agencies to implement operational improvements to ensure rapid access to advances, including extending hours and creating online platforms. Additionally, the Board must review and potentially revise balance sheet reporting to reduce market distortions and speculation. Finally, a study must be conducted to find ways to reduce the stigma associated with seeking advances.
Yes
Does this make it easier to run a small business?+5
The bill implements simplified procedures for institutions to pledge small business loans as collateral for advances.
Would business owners be better off under this?+4
The bill facilitates easier use of small business loans as collateral for liquidity advances.
Does this make what the government does easier for the public to see?+3
The bill requires a review of Federal Reserve balance sheet reporting to reduce market distortions and speculation.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
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Improved Access to Liquidity: The bill requires the Board and Federal reserve banks to implement improvements to ensure institutions can obtain advances rapidly, including extending access until at least 8 p.m. each day in relevant time zones (Section 2, paragraph 4, subparagraph A).
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Simplified Collateral Processes: The act mandates implementing simplified procedures for institutions to pledge small business loans as collateral, specifically emphasizing easier documentation for smaller institutions (Section 2, paragraph 4, subparagraph E).
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Enhanced Technical Ease: The bill directs the creation of a secure, computer-based online access platform to help institutions obtain advances, which includes automating the approval process if appropriate collateral is provided (Section 2, paragraph 4, subparagraph B).
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Support for Smaller Institutions: An outreach program will be created and funded to provide technical assistance and information to smaller institutions regarding how to access advances (Section 2, paragraph 4, subparagraph F).
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Reduction of Market Stigma and Speculation: The bill requires a review of balance sheet reporting to reduce the risk of market distortions caused by speculative activity and directs a study to find ways to reduce the stigma associated with seeking advances (Section s 2, paragraph 4, subparagraph A; and Section 2, paragraph 7).
Potential Negative Impacts for People
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Increased Operational Burdens: While the bill seeks to avoid undue burdens, it mandates that depository institutions conduct required testing of advances and maintain specific operational and technical capacities (Section 2, paragraph 2, subparagraph A).
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Mandatory Testing Schedules: Institutions are required to undergo mandatory testing based on their asset size, which could include quarterly requirements for larger institutions or semiannual requirements for others (Section 2, paragraph 3, subparagraph A).
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Increased Administrative Requirements: Management of eligible institutions must establish liquidity risk management plans and have them reviewed and approved by a risk committee or equivalent body at least annually (Section 2, paragraph 3, subparagraph D).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Economy And Finance
- Improves Small Business Support+5
- Demographic And Interest Groups
- Good For Business Owners+4
- Governance And Ideology
- Improves Government Transparency+3
- 5/20/2026
- Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- 1 Cosponsor added.
- Introduced in Senate
One bill Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.
John KennedyRepublican · Louisiana