BRINGING THE DISCOUNT WINDOW INTO THE 21ST CENTURY ACT

On 2026-02-09, Representative Bill Foster (D-IL-11) delivered a floor speech titled "BRINGING THE DISCOUNT WINDOW INTO THE 21ST CENTURY ACT" in the House. The speech addressed the economy and also covered taxes, trade policy. It referenced legislation including HR3390, HR4551.

BRINGING THE DISCOUNT WINDOW INTO THE 21ST CENTURY ACT

Congressional Record, Volume 172 Issue 27 (Monday, February 9, 2026) [Congressional Record Volume 172, Number 27 (Monday, February 9, 2026)] [House] [Pages H2076-H2078] From the Congressional Record Online through the Government Publishing Office [ www.gpo.gov ] BRINGING THE DISCOUNT WINDOW INTO THE 21ST CENTURY ACT Mr. HILL of Arkansas. Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 3390) 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, as amended. The Clerk read the title of the bill. The text of the bill is as follows: H.R. 3390 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 [[Page H2077]] ``(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.''. The SPEAKER pro tempore. Pursuant to the rule, the gentleman from Arkansas (Mr. Hill) and the gentlewoman from Ohio (Mrs. Beatty) each will control 20 minutes. The Chair recognizes the gentleman from Arkansas. General Leave Mr. HILL of Arkansas. Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days in which to revise and extend their remarks and include extraneous material for the Record on this bill. The SPEAKER pro tempore. Is there objection to the request of the gentleman from Arkansas? There was no objection. Mr. HILL of Arkansas. Mr. Speaker, I yield myself such time as I may consume. I rise today in support of Ms. De La Cruz's bill, the Bringing the Discount Window into the 21st Century Act. It is critical that our banks have the ability to have emergency liquidity in the case of a crisis or having liquidity intraday in the banking day without a stigma. These are challenges. They were challenges before the financial crisis, but it continues today. This bill allows banks to keep credit flowing through the economy while reducing risks that a panic-induced bank run would lead to unnecessary bank failures. {time} 1630 The discount window has been underused and burdened by operational difficulties and stigma. We have seen that on this House floor in our economy, most recently in the failures of Silicon Valley Bank and Signature Bank in the spring of 2023, where fear of a market reaction and outdated technology delayed the use of the discount window when it was needed most. It is critical that the Federal Reserve learn from these mistakes of the past and allow the discount window to fulfill its role as the primary tool for stabilizing the financial system in a time of stress. Representative De La Cruz's bipartisan bill would do just that by directing the Fed to conduct a review of the discount window, submit a plan to Congress with concrete, actionable reforms, and then provide regular updates on its implementation. For example, H.R. 3390 explicitly directs the Federal Reserve to evaluate whether extending operating hours and improving technology would make the discount window more accessible and thereby more effective. In requiring the Fed to make changes based on these findings, H.R. 3390 goes beyond a study bill and would meaningfully address deficiencies that would make the American financial system stronger and more stable. Mr. Speaker, I thank the gentlewoman from south Texas (Ms. De La Cruz) for her leadership on this important issue to make sure the Fed is ready and the discount window use is appropriate for the 21st century, where money now moves, Mr. Speaker, at the press of a button. Mr. Speaker, I urge my colleagues to support this bill, and I reserve the balance of my time. Mrs. BEATTY. Mr. Speaker, I yield myself such time as I may consume. Mr. Sp

Referenced legislation: HR3390, HR3390, HR4551