Shutdown Guidance for Financial Institutions Act
Shutdown Guidance for Financial Institutions Act
Plain Language Summary
# Shutdown Guidance for Financial Institutions Act (HR 5689) Summary **What the bill does:** This bill would require five major financial regulators—the Federal Reserve, Consumer Financial Protection Bureau, Office of the Comptroller of the Currency, Federal Deposit Insurance Corporation, and National Credit Union Administration—to work together and issue guidance to banks and credit unions. The guidance would encourage financial institutions to be more flexible with customers who are harmed by a government shutdown, such as federal employees who stop receiving paychecks. **Key provisions and who it affects:** The bill asks regulators to instruct banks to consider helping affected consumers and businesses by modifying loan terms, extending credit, and preventing negative credit reports that could damage people's credit scores during a shutdown. This primarily affects federal workers, contractors, and businesses that depend on government spending.
The regulators would also need to issue a public statement about the guidance. **Current status:** The bill is currently in committee and has not yet been voted on by the full House. It was introduced by Rep. Suhas Subramanyam (D-VA) during the 119th Congress.
CRS Official Summary
Shutdown Guidance for Financial Institutions Act This bill directs financial regulators—including the Federal Reserve Board, the Consumer Financial Protection Bureau, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the National Credit Union Administration—to jointly issue guidance relating to a government shutdown.Specifically, financial regulators must issue guidance encouraging financial institutions towork with consumers and businesses affected by a shutdown,recognize that consumers and businesses affected by a shutdown may lose access to credit and face temporary hardship in making payments on debts,consider efforts to modify terms on existing loans or extend new credit to assist consumers and businesses affected by a shutdown, andtake steps to prevent adverse credit information from being reported in a manner that harms consumers affected by a shutdown.In addition, financial regulators must jointly issue a press release to notify financial institutions, consumers, and businesses of this guidance in the event of a government shutdown.Financial regulators must also complete a report after a government shutdown regarding the guidance's effectiveness and update the guidance if any shortcoming are identified in the report.
Latest Action
Referred to the Committee on Financial Services, and in addition to the Committee on the Budget, 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.