FRAME Act
- Bill Number
- S. 2843
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 1
- Policy Area
- Finance and Financial Sector
- Status
- Introduced
- Latest Action
- 2025-09-17: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- Last Updated
- 2025-11-18T18:52:19Z
AI-Generated Summary
Purpose
The Federal Reserve Accountability for Major Expenditures Act (FRAME Act) aims to enhance congressional oversight of the Federal Reserve's spending by requiring legislative approval for significant capital expenditures, ensuring greater accountability for major financial outlays by the central bank.
Key Provisions
- Threshold for Review: The Federal Reserve is prohibited from making any capital expenditure (e.g., large purchases of assets or infrastructure) exceeding $100 million unless Congress explicitly approves it. Approval is presumed unless a joint resolution of disapproval is enacted into law within 60 calendar days after Congress receives the Federal Reserve's request.
- Joint Resolution Requirements:
- Must be introduced within 3 calendar days of Congress receiving the request.
- Contains no preamble and has a specific title: "Joint resolution relating to the disapproval of Federal Reserve capital expenditure under the FRAME Act."
- Sole content after the resolving clause: "That Congress disapproves the capital expenditure."
- Expedited Procedures in the House of Representatives:
- Committees must report the resolution within 20 days or be discharged.
- Motion to proceed is allowed up to 24 days after the request, with debate limited to 2 hours equally divided between proponents and opponents.
- All points of order (objections based on procedural rules) are waived, and the resolution is considered read without amendments.
- Expedited Procedures in the Senate:
- Resolutions are placed immediately on the calendar upon introduction.
- Motion to proceed is in order between days 16 and 24 after the request, with debate limited to 10 hours equally divided.
- No amendments, postponements, or motions to recommit are allowed; voting occurs immediately after debate.
- Inter-House Coordination and Veto Handling:
- If one chamber passes a resolution, the other follows expedited procedures on it without committee referral.
- Time for presidential action (including vetoes) does not count toward the 60-day window.
- Veto overrides follow standard procedures, with limited debate in the Senate (1 hour).
- Rulemaking Authority: The procedures are established as rules of Congress, superseding existing rules where inconsistent, but each chamber retains the right to change them.
Significant Changes to Existing Law
- This bill introduces a novel "fast-track" disapproval mechanism specifically for Federal Reserve capital expenditures over $100 million, which does not currently exist. Previously, the Federal Reserve operated with significant independence in its budgeting and expenditures under the Federal Reserve Act, with limited direct congressional veto power over individual spending decisions. The act shifts some control to Congress without altering the Fed's overall monetary policy autonomy.
Potential Impacts
- On Government Agencies: The Federal Reserve's operational independence in capital spending would be curtailed, potentially delaying or blocking major projects (e.g., building expansions or technology upgrades) and requiring more coordination with Congress. Other agencies, like congressional committees, would gain procedural tools for quicker reviews.
- On Citizens: Taxpayers and the public could benefit from increased transparency and accountability in how the Federal Reserve uses funds derived from its operations (which indirectly affect the economy), but it might introduce political influences into the Fed's decisions, potentially affecting economic stability.
- On International Relations: No direct impacts are outlined, though delays in Fed expenditures could indirectly influence global financial markets if they affect the U.S. central bank's infrastructure or capabilities.
Main Stakeholders Affected
- Federal Reserve: Primary target, as it must submit requests and face potential blocks on large expenditures.
- U.S. Congress: Especially the Senate Committee on Banking, Housing, and Urban Affairs and House equivalents, which gain enhanced oversight roles and expedited voting processes.
- Taxpayers and Economy: Indirectly affected through potential changes in Fed efficiency and fiscal responsibility.
- Financial Institutions and Markets: Could experience ripple effects if Fed projects are delayed, influencing broader economic policy implementation.
Notable Legal, Constitutional, or Political Implications
- Legal: Establishes a clear procedural framework for congressional intervention, treating the joint resolution as a statutory tool rather than an appropriation, which could face challenges if seen as infringing on the Fed's statutory independence.
- Constitutional: Reinforces Congress's "power of the purse" under Article I (control over federal spending), but raises questions about the balance with the executive branch's (via the President) role in appointments and the Fed's quasi-independent status. The bill explicitly invokes Congress's rulemaking power, minimizing internal procedural disputes.
- Political: Could politicize the Federal Reserve's operations, leading to partisan debates over expenditures and potentially eroding the central bank's perceived neutrality. It may encourage similar oversight bills for other independent agencies, altering the dynamics of checks and balances.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Recent Actions
- 2025-09-17: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- 2025-09-17: Introduced in Senate
Bill Versions
- Federal Reserve Accountability for Major Expenditures Act — issued 2025-09-17 — PDF (8 pages)