Bill Summary
The "Enhancing Financial Stability Research and Oversight Act" is a legislative proposal aimed at amending the Financial Stability Act of 2010 to strengthen the operational independence and effectiveness of the Office of Financial Research (OFR) and the Financial Stability Oversight Council (FSOC).
Key provisions of the bill include:
1. **Preservation of Independent Funding**: The bill ensures that the OFR has a minimum annual budget of $124.6 million, which is subject to annual adjustments based on the employment cost index. The Director of the OFR will have sole discretion over the budget, free from external influence.
2. **Minimum Staffing Levels**: The bill establishes minimum staffing requirements for both the OFR (at least 231 full-time positions) and the FSOC (at least 48 full-time positions). This aims to ensure adequate human resources for conducting financial stability research and oversight.
3. **Fund Transfers**: The OFR is mandated to transfer a minimum of $15.3 million annually to the FSOC to cover its operational expenses, with this amount also subject to annual adjustments based on the employment cost index.
Overall, the bill seeks to enhance the capacity and independent functioning of the OFR and FSOC, contributing to improved financial stability oversight in the U.S. financial system.
Possible Impacts
Here are three examples of how the "Enhancing Financial Stability Research and Oversight Act" could affect people:
1. **Increased Oversight and Stability in Financial Markets**: By ensuring a minimum staffing level and budget for the Financial Stability Oversight Council (FSOC) and the Office of Financial Research (OFR), the legislation aims to enhance the ability of these entities to monitor and address potential risks in the financial system. This could lead to more effective regulation and oversight, ultimately reducing the likelihood of financial crises that can have widespread negative impacts on employment, savings, and economic stability for individuals and families.
2. **Enhanced Research and Data Analysis**: With the assurance of independent funding and a guaranteed minimum budget for the OFR, the act can facilitate more robust research on financial stability issues. This can lead to better-informed policies and practices that protect consumers from financial predation and enhance their financial literacy. Individuals may benefit from improved regulations that safeguard their investments, loans, and savings.
3. **Employment Opportunities**: The establishment of minimum staffing levels for the FSOC means that there will be a commitment to hiring and maintaining a certain number of professionals in financial oversight roles. This could create job opportunities in public service for economists, analysts, and financial experts. Individuals seeking careers in finance or public policy may find increased job openings as a result of the enforced staffing requirements, supporting economic growth and providing stable employment prospects.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7132 Introduced in House (IH)]
<DOC>
119th CONGRESS
2d Session
H. R. 7132
To amend the Financial Stability Act of 2010 to preserve the
independent funding in the Office of Financial Research, to establish
minimum staffing levels for the Financial Stability Oversight Council,
to establish minimum funding levels for such staff, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 16, 2026
Mr. Foster (for himself, Mr. Sherman, Mrs. Beatty, Mr. Casten, and Ms.
Velazquez) introduced the following bill; which was referred to the
Committee on Financial Services
_______________________________________________________________________
A BILL
To amend the Financial Stability Act of 2010 to preserve the
independent funding in the Office of Financial Research, to establish
minimum staffing levels for the Financial Stability Oversight Council,
to establish minimum funding levels for such staff, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Enhancing Financial Stability
Research and Oversight Act''.
SEC. 2. PRESERVING INDEPENDENT FUNDING.
The Financial Stability Act of 2010 (12 U.S.C. 5311 et seq.) is
amended--
(1) in section 152--
(A) by amending subsection (c) to read as follows:
``(c) Budget.--
``(1) In general.--The Director shall have sole discretion
to establish the annual budget of the Office.
``(2) Minimum funding level of the budget.--The annual
budget of the Office in any given fiscal year shall not be less
than $124,627,000.
``(3) Adjustment of minimum funding level.--The dollar
amount referred to in paragraph (2) shall be adjusted annually
by the Director, using the percent increase (if any) in the
employment cost index for total compensation for State and
local government workers published by the Federal Government,
or the successor index thereto, for the 12-month period ending
September 30 of the year preceding the annual budget.'';
(B) in subsection (d)--
(i) by striking ``, in consultation with
the Chairperson,'' each place such term
appears; and
(ii) in paragraph (1), by striking ``may
fix the number of, and appoint'' and inserting
``shall ensure that the Office has not less
than 231 full-time equivalent positions, and
may appoint'';
(C) in subsection (h), by striking ``, in
consultation with the Chairperson,''; and
(D) in subsection (i), by striking ``, in
consultation with the Chairperson,''; and
(2) in section 155--
(A) in subsection (d), by inserting before the
period the following: ``, as determined in the sole
discretion of the Director''; and
(B) by adding at the end the following:
``(e) Reviewability.--Notwithstanding any other provision of this
subtitle, the funding pursuant to subsection (d) shall not be subject
to review by the Committees on Appropriations of the House of
Representatives and the Senate.
``(f) Preservation of the Office of Financial Research's
Independence.--Nothing in this section shall authorize the Secretary to
influence the budget or the number or compensation of employees of the
Office.''.
SEC. 3. MINIMUM FSOC STAFFING LEVELS.
(a) Minimum Staffing Level.--Section 111 of the Financial Stability
Act of 2010 (12 U.S.C. 5321) is amended by adding at the end the
following:
``(k) Minimum Staffing Level.--The Chairperson of the Council shall
ensure that the Council has not less than 48 full-time equivalent
positions, not including any employees detailed pursuant to subsection
(j).''.
(b) Minimum Budget Levels.--Section 118 of the Financial Stability
Act of 2010 (12 U.S.C. 5328) is amended to read as follows:
``SEC. 118. COUNCIL FUNDING.
``(a) In General.--The Office of Financial Research shall transfer
to the Council the amount of funds necessary to pay for the expenses of
the Council, and the Council may immediately use such funds.
``(b) Minimum Budget.--The Office of Financial Research shall
transfer not less than $15,287,000 to the Council each year to pay for
the staffing and other expenses of the Council, including for the
office of the independent member of the Council described under section
111(b)(1)(J). Such dollar amount shall be adjusted annually by the
Chairperson of the Council, using the percent increase (if any) in the
employment cost index for total compensation for State and local
government workers published by the Federal Government, or the
successor index thereto, for the 12-month period ending September 30 of
the previous year.''.
<all>