Bill · S. 869· Senate(119-S-869)
Federal Reserve Board Abolition Act
- Introduced
- 3/5/2025
- Last activity
- 3/5/2025 — Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- Sponsored by
- Mike Lee
- Cosponsors
- None
- Introduced
- In Committee
What this bill would do
This bill, titled the "Federal Reserve Board Abolition Act," seeks to abolish the Board of Governors of the Federal Reserve System and all Federal reserve banks. It also calls for the repeal of the Federal Reserve Act. These changes are set to take effect at the end of a one-year period following the Act's enactment. During this year, the Chairman of the Board of Governors will manage the winding up of affairs, including employee compensation and asset management. Assets will be liquidated by the Director of the Office of Management and Budget to maximize returns to the Treasury. Finally, the Secretary of the Treasury will assume all outstanding liabilities, including employee benefits.
Yes
Does this give the federal government more power?+2
The bill centralizes the management of former Federal Reserve assets and liabilities under the Secretary of the Treasury.
Does this reduce what the federal government owes?+1
The liquidation of Federal Reserve assets is directed to maximize returns to the Treasury's General Fund.
Does this make what the government does easier for the public to see?+1
The bill requires a detailed joint report to be submitted to Congress regarding the implementation and unresolved issues of the dissolution.
The opposite· 3 of 10
Is this likely to create jobs?-5
The bill abolishes the Board of Governors and all Federal reserve banks, resulting in the loss of existing employee positions.
Does this reduce what the federal government spends?-2
The transfer of outstanding liabilities to the Secretary of the Treasury creates new long-term obligations for the government.
Would business owners be better off under this?-2
The elimination of the central banking system removes a predictable regulatory and monetary environment for businesses.
Who it would affect, and how
Potential Positive Impacts for People
-
Maximizing Returns to the Treasury: The Director of the Office of Management and Budget is directed to liquidate assets in a way that maximizes the return to the Treasury (Section 2(c)(2)(A)). This could result in more money being deposited into the General Fund of the Treasury after claims are satisfied (Section 2(c)(2)(B)).
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Protection of Employee Compensation and Benefits: The Chairman is tasked with providing for the payment of compensation and benefits that accrue to employees before their positions are abolished (Section 2(c)(1)(A)(i)). Additionally, all outstanding liabilities, including retirement and other benefits for former officers and employees, are to be assumed by the Secretary of the Treasury (Section 2(c)(3)).
Potential Negative Impacts for People
-
Loss of Positions: The bill results in the abolition of the Board of Governors of the Federal Reserve System and each Federal reserve bank, which involves the abolition of employee positions (Section 2(a) and Section 2(c)(1)(A)(i)).
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Assumption of Liabilities by the Treasury: All outstanding liabilities of the Board and the Federal reserve banks, including those for retirement and other benefits, will become the liability of the Secretary of the Treasury (Section 2(c)(3)).
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
- Reduces National Debt+1Increases Job Creation-5Reduces Government Spending-2Improves Economic Growth-1Improves Fiscal Responsibility-1Reduces Inflation-1
- Demographic And Interest Groups
- Good For Business Owners-2Good For Union Workers-2Good For High Income Households-1Good For Low Income Households-1Good For Middle Class Households-1
- Governance And Ideology
- Increases Federal Power+2Improves Government Transparency+1
- 3/5/2025
- Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- 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.