SenateS. 4617119th Congress

Exchange Stabilization Fund Transparency Act

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[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 4617 Introduced in Senate (IS)]

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119th CONGRESS
  2d Session
                                S. 4617

   To strengthen transparency over efforts by the Department of the 
    Treasury to use the Exchange Stabilization Fund to aid foreign 
           countries without prior notification to Congress.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                              May 21, 2026

 Mrs. Shaheen (for herself and Mr. Grassley) introduced the following 
 bill; which was read twice and referred to the Committee on Banking, 
                       Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL

 
   To strengthen transparency over efforts by the Department of the 
    Treasury to use the Exchange Stabilization Fund to aid foreign 
           countries without prior notification to Congress.

    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 ``Exchange Stabilization Fund 
Transparency Act''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Appropriate committees of congress.--The term 
        ``appropriate committees of Congress'' means--
                    (A) the Committee on Foreign Relations and the 
                Committee on Banking, Housing, and Urban Affairs of the 
                Senate; and
                    (B) the Committee on Foreign Affairs and the 
                Committee on Financial Services of the House of 
                Representatives.
            (2) Exchange stabilization fund.--The term ``Exchange 
        Stabilization Fund'' means the stabilization fund established 
        under section 5302(a) of title 31, United States Code.
            (3) Foreign entity.--The term ``foreign entity'' means an 
        entity that is not organized under the laws of the United 
        States or any jurisdiction within the United States.
            (4) Government of a foreign country.--The term ``government 
        of a foreign country''--
                    (A) means--
                            (i) any subdivision, agency, or 
                        instrumentality of that government; and
                            (ii) any entity owned or controlled by that 
                        government; and
                    (B) includes a central bank of the foreign country.

SEC. 3. LIMITATION ON USE OF EXCHANGE STABILIZATION FUND TO AID FOREIGN 
              COUNTRIES.

    (a) Notification Required.--Not less than 24 hours before the 
Secretary of the Treasury commits to providing assistance to a foreign 
entity or the government of a foreign country using the Exchange 
Stabilization Fund, including through the establishment of currency 
swap lines, the purchase of local currency or sovereign debt of a 
foreign country, or the extension of any credit instrument, the 
Secretary, in consultation with the Secretary of State as appropriate, 
shall submit to the appropriate committees of Congress a notification 
of the intention to provide that assistance.
    (b) Elements.--A notification submitted to the appropriate 
committees of Congress under subsection (a) with respect to assistance 
to be provided to a foreign entity or the government of a foreign 
country shall, to the extent such information is available, include--
            (1) a detailed description of the nature, amount, duration, 
        and specific terms of the assistance;
            (2) a detailed description of why providing the assistance 
        advances the national interests of the United States, 
        including--
                    (A) an explanation of whether the economy of the 
                foreign country is important to the United States or 
                global economy or financial system and, if so, why; and
                    (B) an assessment of the impact of not providing 
                the assistance;
            (3) a detailed description of engagement the United States 
        Government has undertaken as of the date of the notification, 
        or is planning to undertake, with the International Monetary 
        Fund and other international financial institutions, the 
        private sector, and the governments of countries that are 
        partners of the United States to provide financial assistance 
        to the foreign country;
            (4) any risk assessment for the foreign country prepared by 
        agencies of the United States Government relating to the 
        provision of the assistance and the associated interest premium 
        and an explanation of how the risk assessment affected the 
        decision to use the Exchange Stabilization Fund;
            (5) an assessment of the impact that providing the 
        assistance will have on reserves within the Exchange 
        Stabilization Fund, including on reserves of United States 
        dollars, foreign currencies, and Special Drawing Rights;
            (6) a statement of any conditions that the United States 
        Government is imposing on use of the assistance with respect 
        to--
                    (A) increasing the likelihood of repayment; and
                    (B) the fiscal or economic policies of the foreign 
                country;
            (7) an explanation for why the conditions described in 
        paragraph (6) were imposed or, if no such conditions were 
        imposed, an explanation for why not;
            (8) an assessment of the expected repayment to the United 
        States of the assistance and the likelihood that the government 
        of the foreign country will default on its international 
        obligations following the provision of the assistance;
            (9) a timeline agreed to for repayment of the assistance, 
        if applicable;
            (10) a description of any other safeguards put in place to 
        protect United States taxpayer resources; and
            (11) if any information required by paragraphs (1) through 
        (10) to be included in the notification is unavailable at the 
        time of the submission of the notification, an estimate, not to 
        exceed 14 days, of when that information will be provided to 
        the appropriate committees of Congress.
    (c) Notification Update.--The Secretary of the Treasury shall 
provide to the appropriate committees of Congress in writing any 
information relating to providing assistance described in subsection 
(a) that was not available at the time the Secretary submitted the 
notification required by that subsection on the earlier of--
            (1) the date that is 14 days after the Secretary commits to 
        using the Exchange Stabilization Fund to provide the 
        assistance; or
            (2) the first date on which the Secretary has used at least 
        $500,000,000 from the Exchange Stabilization Fund to provide 
        the assistance.
    (d) Form of Notification.--The information required by subsections 
(b) and (c) shall be submitted in unclassified form, but may include a 
classified annex as necessary to protect sensitive information if an 
explanation is provided for why the information is required to be 
classified.
    (e) Briefing Required.--Not later than 7 days after the Secretary 
of the Treasury commits to using the Exchange Stabilization Fund to 
provide assistance described in subsection (a) or otherwise 
significantly intervenes in international financial markets, including 
through the substantial purchase of foreign currency, the Secretary, in 
consultation with the Secretary of State as appropriate, shall provide 
a briefing to the appropriate committees of Congress.
    (f) Retroactive Transparency.--Not later than 30 days after the 
date of the enactment of this Act, the Secretary of the Treasury, in 
consultation with the Secretary of State as appropriate, shall submit 
to the appropriate committees of Congress a report that includes, for 
each instance in which assistance described in subsection (a) was 
provided to a foreign entity or the government of a foreign country 
during the 4-year period preceding such date of enactment--
            (1) all of the information required, by paragraphs (1) 
        through (10) of subsection (b), to be included in a 
        notification submitted under subsection (a);
            (2) a copy of any and all written agreements between the 
        United States and the foreign entity or the government of the 
        foreign country, as the case may be, related to the assistance;
            (3) a description of the status of the assistance, 
        including whether the assistance is ongoing or has terminated; 
        and
            (4) a determination of whether additional assistance using 
        the Exchange Stabilization Fund is likely to be required by the 
        foreign entity or the government of the foreign country, as the 
        case may be, in the 2-year period following such date of 
        enactment.

SEC. 4. MODIFICATION OF EXISTING EXCHANGE STABILIZATION FUND 
              DISCLOSURE.

    Any information provided to a committee of Congress under section 
5302(c)(1) of title 31, United States Code, relating to an agreement or 
transaction with a foreign entity or the government of a foreign 
country shall also be provided to the Committee on Foreign Relations of 
the Senate and the Committee on Foreign Affairs of the House of 
Representatives.
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