Federal Insurance Office Elimination Act
- Bill Number
- H.R. 643
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Finance and Financial Sector
- Status
- Introduced
- Latest Action
- 2025-01-23: Referred to the House Committee on Financial Services.
- Last Updated
- 2026-06-24T08:09:21Z
AI-Generated Summary
Purpose
The Federal Insurance Office Elimination Act (H.R. 643) aims to abolish the Federal Insurance Office (FIO) within the U.S. Department of the Treasury. Established under the Dodd-Frank Act, the FIO monitors the insurance sector, advises on policy, and represents U.S. interests internationally. The bill seeks to eliminate this office to reduce federal bureaucracy while preserving the Treasury Secretary's broader authority over insurance-related matters.
Key Provisions
- Elimination of the Office: The FIO and the position of its Director are directly terminated.
- Statutory Amendments:
- Removes Section 313 from Title 31 of the U.S. Code, which created the FIO.
- Updates the table of contents in the relevant code section to reflect this removal.
- Conforming Changes to Other Laws:
- Amends the Dodd-Frank Wall Street Reform and Consumer Protection Act (2010) by striking references to the FIO in provisions related to financial stability oversight, the Financial Stability Oversight Council (FSOC), and orderly liquidation processes for failing financial companies. Where the FIO is removed, responsibilities shift to entities like the Secretary of the Treasury or the Federal Reserve Board.
- Modifies the Economic Growth, Regulatory Relief, and Consumer Protection Act (2018) to exclude the FIO from consultations on capital standards for certain financial institutions, limiting involvement to the Treasury Secretary and Federal Reserve.
- Preservation Clause: Explicitly states that the elimination does not limit the Treasury Secretary's existing powers regarding insurance issues.
Significant Changes to Existing Law
- Removal from Regulatory Frameworks: The bill excises the FIO from key roles in the FSOC (e.g., as a voting member and participant in risk assessments) and from processes for designating non-bank financial companies as systemically important, potentially streamlining decision-making by consolidating authority with the Treasury Secretary.
- Shift in Consultation Requirements: Laws that previously required input from the FIO Director (e.g., on international insurance standards or supervisory reports) now involve only the Treasury Secretary or Federal Reserve, reducing layers of review.
- No Broader Repeal: While the FIO is eliminated, core insurance-related authorities under Dodd-Frank and other statutes remain intact, avoiding a complete overhaul of insurance regulation.
Potential Impacts
- On Government Agencies: The Department of the Treasury will see a reduction in staff and functions, potentially lowering administrative costs but requiring reallocation of insurance monitoring duties to the Secretary's office or other agencies like the Federal Reserve. This could simplify inter-agency coordination in financial stability efforts.
- On Citizens and the Economy: Minimal direct impact on individuals, as the FIO does not regulate consumers directly (insurance is primarily state-regulated). However, it may indirectly affect financial market stability by altering federal oversight of the $1.3 trillion insurance industry, possibly leading to less centralized monitoring of systemic risks.
- On International Relations: The U.S. loses a dedicated office for representing insurance interests in global forums (e.g., International Association of Insurance Supervisors). The Treasury Secretary would handle these, which might reduce specialized expertise in trade negotiations or policy coordination with foreign regulators.
Main Stakeholders Affected
- Federal Agencies: U.S. Department of the Treasury (direct loss of office), Federal Reserve Board, and FSOC members (e.g., SEC, FDIC), who will absorb or adjust FIO-related responsibilities.
- Insurance Industry: Insurers and trade groups (e.g., those involved in systemic risk discussions) may experience less federal scrutiny but also reduced advocacy for U.S. positions abroad.
- State Regulators: State insurance departments, which handle most day-to-day oversight, could see unchanged roles but potentially more direct interaction with Treasury on federal matters.
- Financial Sector Broadly: Banks and non-bank firms designated as systemically important may face altered federal review processes without FIO input.
Notable Legal, Constitutional, or Political Implications
- Legal Implications: The bill complies with congressional authority to reorganize executive agencies under Article I of the Constitution. It avoids constitutional challenges by not infringing on private rights or state powers, as insurance regulation remains primarily state-based (per the McCarran-Ferguson Act of 1945, which affirms this federal deference).
- Constitutional Aspects: No direct impact on separation of powers, but it exemplifies Congress's oversight of the executive branch by eliminating a post-Dodd-Frank creation, reinforcing legislative control over agency structure.
- Political Implications: As a deregulatory measure introduced by Republican lawmakers, it reflects efforts to scale back financial reforms from the 2008 crisis era, potentially sparking debate on balancing oversight with efficiency. If enacted, it could set a precedent for eliminating other specialized offices, influencing future budget and reform discussions in the Financial Services Committee.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (26)
Rep. Cline, Ben [R-VA-6], Rep. Haridopolos, Mike [R-FL-8], Rep. Norman, Ralph [R-SC-5], Rep. Ogles, Andrew [R-TN-5], Rep. Loudermilk, Barry [R-GA-11], Rep. Schmidt, Derek [R-KS-2], Rep. Moore, Barry [R-AL-1], Rep. Grothman, Glenn [R-WI-6], Rep. Kennedy, Mike [R-UT-3], Rep. Barr, Andy [R-KY-6], Rep. Self, Keith [R-TX-3], Rep. Weber, Randy K. Sr. [R-TX-14], Rep. Taylor, David [R-OH-2], Rep. Gill, Brandon [R-TX-26], Rep. Moore, Riley [R-WV-2], Rep. Davidson, Warren [R-OH-8], Rep. Moore, Tim [R-NC-14], Rep. Brecheen, Josh [R-OK-2], Rep. Biggs, Sheri [R-SC-3], Rep. Patronis, Jimmy [R-FL-1], Rep. Tiffany, Thomas P. [R-WI-7], Rep. Rogers, Mike D. [R-AL-3], Rep. Messmer, Mark B. [R-IN-8], Rep. McDowell, Addison P. [R-NC-6], Rep. Yakym, Rudy [R-IN-2], Rep. Lawler, Michael [R-NY-17]
Recent Actions
- 2025-01-23: Referred to the House Committee on Financial Services.
- 2025-01-23: Introduced in House
- 2025-01-23: Introduced in House
Bill Versions
- Federal Insurance Office Elimination Act — issued 2025-01-23 — PDF (5 pages)