H.R. 1846: Federal Reserve Board Abolition Act (119th Congress) Bill Summary

This bill, titled the Federal Reserve Board Abolition Act, proposes to abolish the Board of Governors of the Federal Reserve System and the Federal Reserve banks. The key provisions of the bill include:

1. Abolition of the Federal Reserve System

The bill states that one year after it is enacted, the Board of Governors and all Federal reserve banks will be abolished. It also repeals the Federal Reserve Act, which originally established these entities.

2. Management During the Dissolution Period

In the year leading up to the abolition, the existing Chairman of the Board will be responsible for:

Winding up the affairs of the Federal Reserve System, which includes managing employees and ensuring compensation and benefits are paid out until the positions are abolished.
Managing the assets and liabilities of the Board and any Federal reserve banks, with an obligation to ensure they are liquidated or assumed by the Secretary of the Treasury.
Taking other necessary actions, with Treasury Secretary approval, to successfully dissolve the entities involved.

3. Liquidation of Assets

The bill outlines a process for liquidating the assets of the Federal Reserve entities:

The Director of the Office of Management and Budget (OMB) will oversee the orderly liquidation of all assets.
After settling claims against the Board and the Federal reserve banks and redeeming stock, the remaining proceeds will be transferred to the Secretary of the Treasury and deposited into the General Fund.

4. Assumption of Liabilities

All liabilities of the Federal Reserve and its banks, such as retirement and benefit obligations for former employees, will be transferred to the Secretary of the Treasury. The Secretary will use funds from the General Fund to meet these obligations.

5. Reporting Requirements

Finally, within 18 months after the bill’s enactment, the Secretary of the Treasury and the Director of OMB must submit a joint report to Congress. This report will detail the steps taken to implement the bill and address any outstanding issues or actions that remain uncompleted.