Shutdown Guidance for Financial Institutions Act
Shutdown Guidance for Financial Institutions Act
Plain Language Summary
# Shutdown Guidance for Financial Institutions Act - Summary **What the bill would do:** This bill would require federal financial regulators (including the Federal Reserve, FDIC, and Consumer Financial Protection Bureau) to create guidance telling banks and credit unions how to help people and businesses during a government shutdown. The guidance would encourage financial institutions to work with affected customers by potentially modifying loan terms, extending new credit, and preventing negative credit reports that could harm those temporarily unable to make payments due to the shutdown. **Who it affects:** The bill primarily affects consumers and businesses that depend on government services or paychecks during a shutdown, as well as the banks and financial institutions that serve them.
It directs action from federal financial regulators. **Current status:** The bill is currently in committee (S 2995, 119th Congress), meaning it has been introduced but has not yet been voted on by the full Senate. It was sponsored by Senator Chris Van Hollen (D-MD).
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
Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.