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HR 24 · 119th CongressIn Committee
Federal Reserve Transparency Act of 2025
Latest updateJan 3, 2025
Referred to the House Committee on Oversight and Government Reform.
Finance and Financial Sector
Sponsor
Thomas Massie
Introduced
January 3, 2025
Latest action
January 3, 2025
Legislative Progress
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Latest Action
Referred to the House Committee on Oversight and Government Reform.
Plain-Language Summary
AI GeneratedUnder current law, the Comptroller General of the United States—the federal government's chief auditor—has authority to audit the Federal Reserve's Board of Governors and regional Federal Reserve banks. However, existing restrictions in section 714 of title 31, United States Code, limit the scope of these audits. Specifically, the law prohibits the Comptroller General from examining certain Federal Reserve monetary policy decisions, discount window lending (emergency loans to banks), and transactions involving special purpose vehicles or facilities created under section 13(3) of the Federal Reserve Act. These carve-outs were designed to insulate sensitive monetary policy operations from legislative scrutiny.
The Federal Reserve Transparency Act of 2025 directs the Comptroller General to conduct a comprehensive audit of the Board of Governors and all Federal Reserve banks within 12 months of enactment, removing the existing restrictions that currently shield certain Fed activities from audit. The bill repeals the second sentence of section 714(b) of title 31, which contained the primary limitation on audit scope. It also amends section 11(s) of the Federal Reserve Act to redefine what constitutes an "emergency lending program" exempt from audit, narrowing the definition to align with the expanded audit authority. These changes eliminate the statutory barriers that previously prevented full examination of Federal Reserve operations.
The Comptroller General must submit a detailed report to Congress within 90 days after completing the audit, including findings, conclusions, and recommendations for legislative or administrative action. The report goes to the Speaker, House and Senate leadership, committee chairs and ranking members with jurisdiction over the Federal Reserve, and any member of Congress who requests it. The audit itself carries no direct appropriation; the Government Accountability Office (which the Comptroller General heads) absorbs the cost within existing resources. The practical effect is that Congress gains access to comprehensive information about Federal Reserve balance sheet operations, emergency lending facilities, and internal decision-making previously off-limits to federal auditors—potentially influencing future legislative debates over Federal Reserve independence and monetary policy oversight.
Key Provisions
- 1Requires the Comptroller General of the United States to complete a full audit of the Board of Governors of the Federal Reserve System and all Federal Reserve banks within 12 months of enactment, notwithstanding existing legal restrictions.
- 2Directs the Comptroller General to submit a detailed audit report to Congress within 90 days of completion, including findings, conclusions, and recommendations for legislative or administrative action, distributed to House and Senate leadership and all committees with jurisdiction.
- 3Repeals the second sentence of section 714(b) of title 31, United States Code, which previously limited the scope of Federal Reserve audits by exempting certain monetary policy decisions and emergency lending facilities from examination.
- 4Amends section 11(s) of the Federal Reserve Act to redefine "emergency lending program" to narrow the categories of Federal Reserve activities that remain exempt from audit, aligning the definition with the expanded audit authority.
- 5Strikes subsection (f) of section 714 of title 31 and removes cross-references to that subsection throughout the statute, eliminating technical provisions that previously supported audit restrictions on Federal Reserve special purpose vehicles and facilities.
★ Why this matters
Congress gains direct access to comprehensive information about Federal Reserve operations, balance sheet decisions, and emergency lending programs that were previously restricted from federal audit. This expands legislative oversight of the nation's central bank and could influence future debates over monetary policy independence, emergency lending authority, and Federal Reserve governance. The audit report becomes a public record available to all members of Congress, potentially shifting the balance of power between the legislative and executive branches regarding Federal Reserve accountability.
● Who this affects
The Comptroller General and Government Accountability Office staff conducting the expanded audit; members of Congress seeking detailed information about Federal Reserve operations; Federal Reserve Board of Governors and regional Federal Reserve bank leadership facing broader examination of their activities; financial institutions that have accessed Federal Reserve emergency lending facilities; and the general public, whose access to Federal Reserve decision-making may increase through congressional disclosure of audit findings.
Bill Text
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<DOC>
119th CONGRESS
1st Session
H. R. 24
To require a full audit of the Board of Governors of the Federal
Reserve System and the Federal reserve banks by the Comptroller General
of the United States, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
January 3, 2025
Mr. Massie (for himself, Mr. Biggs of Arizona, Ms. Boebert, Mr. Bost,
Mr. Brecheen, Mr. Burchett, Mr. Burlison, Mrs. Cammack, Mr. Cline, Mr.
Cloud, Mr. Collins, Mr. Crane, Mr. Crawford, Mr. Davidson, Mr. Estes,
Mr. Finstad, Mr. Fitzpatrick, Mr. Gosar, Ms. Greene of Georgia, Mr.
Griffith, Ms. Hageman, Mrs. Luna, Ms. Mace, Mr. McClintock, Mr.
McCormick, Mrs. Miller of Illinois, Mr. Moolenaar, Mr. Moore of
Alabama, Mr. Norman, Mr. Ogles, Mr. Palmer, Mr. Perry, Mr. Roy, Mr.
Rutherford, Mrs. Spartz, Mr. Steube, Ms. Tenney, Mr. Weber of Texas,
and Mr. Webster of Florida) introduced the following bill; which was
referred to the Committee on Oversight and Government Reform
A BILL
To require a full audit of the Board of Governors of the Federal
Reserve System and the Federal reserve banks by the Comptroller General
of the United States, 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 ``Federal Reserve Transparency Act of
2025''.
SEC. 2. AUDIT REFORM AND TRANSPARENCY FOR THE BOARD OF GOVERNORS OF THE
FEDERAL RESERVE SYSTEM.
(a) In General.--Notwithstanding section 714 of title 31, United
States Code, or any other provision of law, the Comptroller General of
the United States shall complete an audit of the Board of Governors of
the Federal Reserve System and the Federal reserve banks under
subsection (b) of such section 714 within 12 months after the date of
the enactment of this Act.
(b) Report.--
(1) In general.--Not later than 90 days after the audit
required pursuant to subsection (a) is completed, the
Comptroller General--
(A) shall submit to Congress a report on such
audit; and
(B) shall make such report available to the Speaker
of the House, the majority and minority leaders of the
House of Representatives, the majority and minority
leaders of the Senate, the Chairman and Ranking Member
of the committee and each subcommittee of jurisdiction
in the House of Representatives and the Senate, and any
other Member of Congress who requests the report.
(2) Contents.--The report under paragraph (1) shall include
a detailed description of the findings and conclusion of the
Comptroller General with respect to …