Lawmakers created Federal Home Loan Banks (FHLBs) as a government-sponsored enterprise (GSE) to support mortgage lending by the banks’ member institutions, which include commercial banks and insurance companies. This report describes the role of FHLBs in financial markets, their financial condition, the value of the federal subsidies they receive, and the risks they pose. CBO estimates that because of their GSE status, FHLBs will receive subsidies in fiscal year 2024 totaling $7.3 billion (the central estimate, with a plausible range of $5.7 billion to $8.9 billion). FHLBs’ activities may lead to lower interest rates on single-family residential mortgages, but the effect on rates is difficult to quantify.