H.R. 8671, the Bank Fraud Technology Advancement Act of 2026

September 29, 2026

Cost Estimate

As reported by the House Committee on Financial Services on June 18, 2026

At a GlanceH.R. 8671, the Bank Fraud Technology Advancement Act of 2026As reported by the House Committee on Financial Services on June 18, 2026
By Fiscal Year, Millions of Dollars		2026	2026-2031	2026-2036
Direct Spending (Outlays)		0	3	3
Revenues		0	-3	-3
Increase or Decrease (-) in the Deficit		0	6	6
Spending Subject to Appropriation (Outlays)		0	*	*
Increases net direct spending in any of the four consecutive 10-year periods beginning in 2037?	No	Statutory pay-as-you-go procedures apply?		Yes
	No	Mandate Effects
Increases on-budget deficits in any of the four consecutive 10-year periods beginning in 2037?	No	Contains intergovernmental mandate?		No
	No	Contains private-sector mandate?		Yes, Under Threshold
* = between zero and $500,000.
The bill would Require the federal banking agencies to study and report on the use of fraud detection technology by financial institutions Authorize a temporary pilot program to facilitate access to advanced fraud detection tools for community financial institutions
Estimated budgetary effects would mainly stem from Increases in administrative costs for federal agencies to complete reports and manage the pilot program

Bill Summary

H.R. 8671 would require federal banking agencies to study and report on the use of fraud detection technology by financial institutions. The federal banking agencies under the bill consist of the Federal Deposit Insurance Corporation (FDIC), Federal Reserve, National Credit Union Administration (NCUA), and Office of the Comptroller of the Currency (OCC). The bill would require the banking agencies to consult with the Consumer Financial Protection Bureau (CFPB), Department of the Treasury, Federal Trade Commission (FTC), Federal Communications Commission (FCC), and the Financial Crimes Enforcement Network (FinCEN).

In addition, H.R. 8671 would authorize the federal banking agencies to jointly establish a temporary pilot program to facilitate community financial institution access to advanced fraud detection tools.

Estimated Federal Cost

The estimated budgetary effects of H.R. 8671 are shown in Table 1. CBO estimates that enacting the bill would increase direct spending by $3 million, decrease revenues by $3 million, and increase the deficit by $6 million over the 2026-2036 period. In addition, CBO estimates that implementing the bill would increase spending subject to appropriation by less than $500,000 over the 2026-2031 period.

The costs of the legislation fall within budget functions 370 (commerce and housing credit), 750 (administration of justice), and 800 (general government).

Table 1. Estimated Budgetary Effects of H.R. 8671
	By Fiscal Year, Millions of Dollars
	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	2036	2026-2031	2026-2036
	Increases in Direct Spending
Estimated Budget Authority	0	1	*	1	*	1	0	0	0	0	0	3	3
Estimated Outlays	0	1	*	1	*	1	0	0	0	0	0	3	3
	Decreases in Revenues
Estimated Revenues	0	*	*	*	-1	-2	0	0	0	0	0	-3	-3
	Net Increase in the Deficit From Changes in Direct Spending and Revenues
Effect on the Deficit	0	1	*	1	1	3	0	0	0	0	0	6	6
* = between -$500,000 and $500,000; CBO estimates that implementing H.R. 8671 would increase spending subject to appropriation by less than $500,000 over the 2026-2031 period.

Basis of Estimate

CBO assumes that H.R. 8671 will be enacted by the end of calendar year 2027. Using information about the cost of similar provisions, CBO estimates that each federal banking agency would need about two employees to complete the initial report and implement and oversee the pilot program, at an average annual cost of $280,000 per employee in 2027. CBO expects the pilot program would conclude in 2031.

Direct Spending

Expenditures for the CFPB, FDIC, NCUA, and OCC are classified in the budget as direct spending. The NCUA and OCC collect fees from regulated entities to offset their operating costs. Those fees are recorded in the budget as offsetting receipts, that is, as reductions in direct spending. Accounting for those fees, CBO estimates that, on net, enacting H.R. 8671 would increase direct spending, on net, by $3 million over the 2026-2036 period.

The CFPB is permanently authorized to spend amounts transferred from the combined earnings of the Federal Reserve to carry out its responsibilities, subject to a statutory cap that was most recently lowered by the 2025 reconciliation act (P.L. 119-21). CBO expects that the CFPB will spend all the transferred funds up to its cap in each year over the 2026‑2036 period for its current activities, so CBO does not attribute any increase in direct spending for the CFPB to legislation that increases its responsibilities.

Revenues

The Federal Reserve transfers to the Treasury the income it earns in excess of its expenses; those payments, known as remittances, are recorded in the budget as revenues. Costs incurred by the Federal Reserve therefore reduce revenues. CBO estimates that H.R. 8671 would decrease revenues by $3 million over the 2026-2036 period.

Changes in costs for the Federal Reserve banks have historically resulted in changes to remittances during the same year. However, since fiscal year 2023, most Federal Reserve banks have recorded deferred assets to account for accrued net losses from expenses in excess of income. As a result, remittances have been largely suspended. In CBO’s projections, those deferred assets persist for several years. CBO anticipates that most Federal Reserve banks will resume remittances by 2030 or 2031 and thus most of the effects of changes in costs before that time are reflected in the budget as changes in revenues only after that time.[1]

Spending Subject to Appropriation

CBO estimates that it would cost the Department of the Treasury, FinCEN, and the FTC less than $500,000 over the 2026-2031 period to implement the bill’s requirements; any spending would be subject to the availability of appropriated funds.

Because the FCC is authorized to collect fees each year sufficient to offset the appropriated costs of its regulatory activities, which would be less than $500,000, CBO estimates that the net cost to the FCC would be negligible, assuming appropriation actions consistent with that authority.

Pay-As-You-Go Considerations

The Statutory Pay-As-You-Go Act of 2010 establishes budget-reporting and enforcement procedures for legislation affecting direct spending or revenues. The net changes in outlays and revenues that are subject to those pay-as-you-go procedures are shown in Table 1.

Increase in Long-Term Net Direct Spending and Deficits

CBO estimates that enacting H.R. 8671 would not increase net direct spending or on-budget deficits in any of the four consecutive 10-year periods beginning in 2037.

Mandates

If federal financial regulators increase annual fees to offset the costs of implementing the bill, H.R. 8671 would increase the costs of an existing private-sector mandate on entities required to pay those fees. CBO estimates that the incremental cost of the mandate would be below the annual threshold established in the Unfunded Mandates Reform Act (UMRA) for private-sector mandates ($214 million in 2026, adjusted annually for inflation).

The bill contains no intergovernmental mandates as defined in UMRA.

Estimate Prepared By

Federal Costs: Julia Aman

Revenues: Nathaniel Frentz

Mandates: Rachel Austin

Estimate Reviewed By

Justin Humphrey
Chief, Finance, Housing, and Education Cost Estimates Unit

Joshua Shakin
Chief, Revenue Projections

Kathleen FitzGerald
Chief, Public and Private Mandates Unit

H. Samuel Papenfuss
Deputy Director of Budget Analysis

Estimate Approved By

Phillip L. Swagel Director, Congressional Budget Office

Phillip L. Swagel

Director, Congressional Budget Office

1.For more information, see Congressional Budget Office, “Recent Changes to CBO’s Projections of Remittances From the Federal Reserve” (slide deck, February 2023), www.cbo.gov/publication/58913.

Data and Supplemental Information

table 1