H.R. 4061 would change the procedures that federal regulators follow for determining which nonbank financial institutions should be designated by the Financial Stability Oversight Council (FSOC) as systemically important financial institutions (SIFIs). For example, the bill would increase the frequency and complexity of studies, reviews, and meetings that must be completed before the FSOC can designate a nonbank company as a SIFI. The bill also would allow companies to contest prior designations on the basis of the new criteria and procedures.
CBO estimates that enacting H.R. 4061 would increase net direct spending by $29 million and reduce revenues by $5 million over the 2019-2027 period. CBO estimates that, on net, budget deficits would increase by $34 million over the 2018-2027 period. Because enacting H.R. 4061 would affect direct spending and revenues, pay-as-you-go procedures apply. CBO also estimates that implementing the bill would cost $1 million over the 2019-2022 period, subject to the availability of appropriated funds.
CBO estimates that enacting H.R. 4061 would not increase net direct spending or on-budget deficits by more than $2.5 billion in any of the four consecutive 10-year periods beginning in 2028.
H.R. 4061 contains no intergovernmental mandates as defined in the Unfunded Mandates Reform Act (UMRA).
If the FSOC, the Federal Housing Finance Agency (FHFA), the National Credit Union Administration (NCUA), the Office of the Comptroller of the Currency (OCC), or the Securities and Exchange Commission (SEC) raises the fees they charge to offset the costs associated with implementing the bill, H.R. 4061 would increase the cost of an existing mandate on private entities required to pay those fees. Using information from the affected agencies, CBO estimates that the incremental cost of the mandate would be small. CBO estimates that the incremental cost of the mandate would fall well below the annual threshold for private-sector mandates established in UMRA ($156 million in 2017, adjusted annually for inflation).