Financial Empowerment and Protection Act
- Bill Number
- H.R. 4096
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Finance and Financial Sector
- Status
- Introduced
- Latest Action
- 2025-06-24: Referred to the Committee on Financial Services, and in addition to the Committees on Energy and Commerce, Transportation and Infrastructure, and Education and Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- Last Updated
- 2025-12-09T18:27:23Z
AI-Generated Summary
Purpose of the Legislation
The "Financial Empowerment and Protection Act" (H.R. 4096) aims to simplify bill management for adults living together by requiring certain service providers to offer joint accounts. It also seeks to protect victims of domestic violence, dating violence, sexual assault, or stalking from financial penalties when ending housing leases early.
Key Provisions
- Joint Accounts for Cohabitating Adults (Section 2):
- Covered companies must allow consenting adults who live together (or plan to) to open joint accounts for managing services and related bills.
- All adults must agree to the account, and it must list all their names.
- Account holders can request and receive shared information, such as bills, emails, and online portal access.
- Companies must notify users about shared information and provide required privacy notices (under existing federal rules like Regulation P, which governs how financial institutions handle personal data privacy).
- Violations allow harmed individuals to sue in federal or state court for up to $1,000 per incident.
- For childcare providers, joint accounts are limited to custodial parents of enrolled children.
- Rules take effect 180 days after the bill becomes law.
- No Fees for Early Lease Termination (Section 3):
- Amends the Violence Against Women Act (VAWA) to let victims of domestic violence, dating violence, sexual assault, or stalking end leases early in federally assisted housing without paying early termination fees.
- Applies to applicants or tenants in "covered housing programs" (e.g., public housing or subsidized rentals under fair housing laws).
- Definitions:
- Consenting cohabitating adults: Generally, any adults who agree to live together; for licensed childcare, it means a child's custodial parents.
- Covered companies: A wide range including electric/gas/water utilities, internet/phone providers, landlords (under fair housing laws), childcare providers, mortgage lenders/servicers, cable TV distributors, and creditors offering credit plans (e.g., credit cards or loans). Terms like "creditor," "open-end credit plan" (revolving credit like credit cards), and "closed-end credit plan" (one-time loans) are defined using existing federal consumer protection laws.
Significant Changes to Existing Law
- Introduces new federal mandates for joint accounts, which were not previously required for these non-financial service providers (e.g., utilities or landlords), expanding beyond traditional banking rules.
- Adds a specific fee prohibition to VAWA's housing protections, building on existing VAWA provisions that allow early lease exits but did not explicitly ban fees, making the protection stronger and clearer.
Potential Impacts
- On Citizens: Makes it easier for couples or roommates to handle shared bills jointly, reducing administrative burdens and disputes. Victims of violence gain financial relief in housing transitions, potentially improving safety and access to stable housing.
- On Government Agencies: Minimal direct impact, but agencies overseeing housing (e.g., Department of Housing and Urban Development) and consumer protection (e.g., Federal Trade Commission) may need to enforce or monitor compliance. No notable effects on international relations.
- On Businesses: Covered companies must update systems for joint accounts and notifications, facing potential lawsuits for non-compliance, which could increase operational costs but promote customer convenience.
Main Stakeholders Affected
- Individuals: Cohabitating adults (e.g., couples, roommates) seeking shared account access; victims of domestic violence or related crimes needing safe housing exits.
- Businesses and Providers: Utilities, telecom/internet firms, landlords, childcare centers, mortgage companies, and creditors required to implement joint accounts or waive fees.
- Housing Programs: Federally assisted rentals and fair housing entities, which must align lease terms with the new VAWA amendment.
Notable Legal, Constitutional, or Political Implications
- Legal: Strengthens consumer rights under fair housing and privacy laws by adding civil lawsuit options, potentially increasing court cases for enforcement. Aligns with broader federal efforts in consumer protection (e.g., Truth in Lending Act) without overriding state laws.
- Constitutional: No direct challenges apparent; supports equal protection by aiding vulnerable groups (e.g., domestic violence victims) without infringing on free speech or due process.
- Political: Promotes equity in everyday financial access and victim support, potentially appealing across party lines for family and consumer issues, but may face debate over business compliance burdens in a divided Congress. Referred to multiple committees (Financial Services, Energy and Commerce, etc.) indicates broad jurisdictional scope.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (2)
Rep. Kiggans, Jennifer A. [R-VA-2], Rep. Beatty, Joyce [D-OH-3]
Recent Actions
- 2025-06-24: Referred to the Committee on Financial Services, and in addition to the Committees on Energy and Commerce, Transportation and Infrastructure, and Education and Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2025-06-24: Referred to the Committee on Financial Services, and in addition to the Committees on Energy and Commerce, Transportation and Infrastructure, and Education and Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2025-06-24: Referred to the Committee on Financial Services, and in addition to the Committees on Energy and Commerce, Transportation and Infrastructure, and Education and Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2025-06-24: Referred to the Committee on Financial Services, and in addition to the Committees on Energy and Commerce, Transportation and Infrastructure, and Education and Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2025-06-24: Introduced in House
- 2025-06-24: Introduced in House
Bill Versions
- Financial Empowerment and Protection Act — issued 2025-06-24 — PDF (8 pages)