Under current law, the Financial Research Fund (FRF) is permanently authorized to pay, without further appropriation, the operating costs of the Financial Stability Oversight Council (FSOC), the Office of Financial Research (OFR), as well as certain expenses of the Federal Deposit Insurance Corporation from assessments on certain bank holding companies and nonbank financial companies. H.R. 3340 would change the law so that spending from the FRF would be subject to the annual appropriations process. The bill also would direct FSOC to prepare financial reports that would be submitted to the Congress each quarter and allow the public to comment on FSOC’s proposed rules and reports.
CBO estimates that enacting H.R. 3340 would reduce direct spending by $1.3 billion over the 2016-2025 period; therefore pay-as-you-go procedures apply. (Enacting the bill would not affect revenues.) CBO estimates that implementing the bill would cost the same amount over that period, assuming appropriation of the necessary amounts.
CBO estimates that enacting the legislation would not increase net direct spending or on-budget deficits in any of the four consecutive 10-year periods beginning in 2026.
H.R. 3340 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act and would not affect the budgets of state, local, or tribal governments.