[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4895 Introduced in House (IH)]
<DOC>
117th CONGRESS
1st Session
H. R. 4895
To direct the Secretary of Treasury to establish a Federal office to
oversee local guaranteed income pilots and to implement a national
guaranteed income program, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 30, 2021
Ms. Omar (for herself, Ms. Bush, Mr. Evans, Mr. Bowman, and Ms.
Jayapal) introduced the following bill; which was referred to the
Committee on Ways and Means, and in addition to the Committee on
Financial Services, for a period to be subsequently determined by the
Speaker, in each case for consideration of such provisions as fall
within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To direct the Secretary of Treasury to establish a Federal office to
oversee local guaranteed income pilots and to implement a national
guaranteed income program, 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 ``Sending Unconditional Payments to
People Overcoming Resistances to Triumph Act of 2021'' or the ``SUPPORT
Act of 2021''.
SEC. 2. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Secretary defined.
TITLE I--GUARANTEED INCOME PROGRAMS
Sec. 101. Definitions.
Sec. 102. Office of Guaranteed Income Programs.
Sec. 103. Guaranteed income pilot program.
TITLE II--GUARANTEED INCOME TAX CREDIT
Sec. 201. Establishment of the guaranteed income tax credit.
TITLE III--FEDACCOUNTS
Sec. 301. Creation and integration of FedAccounts.
SEC. 3. SECRETARY DEFINED.
In this Act, the term ``Secretary'' means the Secretary of Treasury
(or the Secretary's delegate).
TITLE I--GUARANTEED INCOME PROGRAMS
SEC. 101. DEFINITIONS.
In this title:
(1) Community development financial institution.--The term
``community development financial institution'' has the meaning
given such term in section 103 of the Community Development
Banking and Financial Institutions Act of 1994 (12 U.S.C.
4702).
(2) Director.--The term ``Director'' means the Director of
the Office of Guaranteed Income Programs established under
section 102.
(3) Unit of general local government.--The term ``unit of
general local government'' has the meaning given such term in
section 102 of the Housing and Community Development Act of
1974 (42 U.S.C. 5302).
SEC. 102. OFFICE OF GUARANTEED INCOME PROGRAMS.
(a) Establishment.--There is established an Office of Guaranteed
Income Programs (in this section referred to as the ``Office'').
(b) Director.--The Office shall be headed by a Director, who shall
be appointed by the Secretary.
(c) Duties.--The Director shall assist the Secretary in--
(1) carrying out the pilot program established in section
103; and
(2) implementing the Federal tax credit established in
title II.
(d) Partnerships With Other Federal Agencies.--
(1) In general.--The Secretary may consult with Federal
agencies to--
(A) establish the organizational structure and
functionality of the Office; and
(B) meet the purposes of this Act.
(2) Specific duties of other federal agencies.--
(A) Department of housing and urban development.--
In order to assist the Secretary the Secretary of
Housing and Urban Development shall provide
administrative expertise with respect to grantmaking to
units of general local government through the community
development block grant program under title I of the
Housing and Community Development Act of 1974 (42
U.S.C. 5301 et seq.).
(B) Department of health and human services.--The
Secretary of Health and Human Services shall provide to
the Secretary and the Director research consulting from
the Office of Planning, Research, and Evaluation and
such Office's experience with the Temporary Assistance
for Needy Families Program.
(C) Internal revenue service.--The Commissioner of
Internal Revenue shall provide to the Secretary access
to tax records to administer and analyze the program
under section 103 and to update the Secretary on
changes to the taxable income of an individual under
this title and title II.
(D) Social security administration.--The
Commissioner of Social Security shall provide to the
Secretary access to identifying records and addresses
to identify individuals under this title and title II
receiving supplemental security income benefits or
social security disability insurance benefits.
(e) Data Sharing.--As determined necessary, the Secretary may work
with other relevant Federal agencies for the purposes of sharing and
updating personal identification information and consolidating a
database of individuals who may receive cash payments under this title
and title II.
(f) National Economic Advisory Council.--
(1) Establishment.--The Director shall establish within the
Office a National Economic Advisory Council to make
recommendations with respect to improving performance and
coordination of basic income pilot programs.
(2) Membership.--The National Economic Advisory Council
shall be composed of 10 members as follows:
(A) The Director.
(B) The following members appointed by the
Director:
(i) One representative from a national
nonprofit civil rights organization.
(ii) One representative from a national
labor organization.
(iii) One representative from an economic
research organization with expertise in cash-
transfer programs.
(iv) One representative from a community
advocacy organization with expertise in cash-
transfer programs.
(v) One representative from a community
development financial institution.
(vi) Two individuals eligible for cash
payments under this title or title II.
(C) Two members appointed by the Secretary.
(3) Recommendations.--The Council shall submit to the
Secretary and Congress annual recommendations relating to the
policies and regulations of the Office.
SEC. 103. GUARANTEED INCOME PILOT PROGRAM.
(a) In General.--The Secretary shall implement a 5-year guaranteed
income pilot program (in this section referred to as the ``Program'')
to provide grants to eligible entities to assist in carrying out a
qualifying pilot program.
(b) Qualifying Pilot Program Defined.--In this section, the term
``qualifying pilot program'' means a new or ongoing local basic income
pilot program that provides to eligible individuals cash payments that
are--
(1) not less than $50 per such individual per payment; and
(2) made on a bi-weekly, monthly, or quarterly basis.
(c) Application.--A grant under this section may be made only to an
eligible entity that submits to the Secretary an application containing
such information as the Secretary may require, including--
(1) a description of a qualifying pilot program to be
carried out using grant amounts; and
(2) an explanation of the need for such program.
(d) Selection.--
(1) In general.--The Secretary, in consultation with the
Director, shall select not less than 500 eligible entities to
participate in the Program based on criteria that the Secretary
shall establish.
(2) Priority.--The Secretary, in approving applications
under this section, shall give priority to applications
submitted by--
(A) units of general local government that have
never established or do not have an existing program to
provide a basic minimum income for individuals;
(B) units of general local government that will
carry out a qualifying pilot program in low-income
geographic areas or persistent poverty counties;
(C) community development financial institutions
that are minority-owned; and
(D) community development financial institutions
that serve or are based in low-income geographic areas
or persistent poverty counties.
(e) Local Evaluations.--Eligible entities may use grant amounts to
cover the costs of evaluations, similar to the requirements in
subsection (g), through working with partners, such as for-profit,
nonprofit, public, or quasi-governmental entities, to design, text, and
report on their income pilots.
(f) Disregard of Cash Payments for Purposes of All Federal and
Federally Assisted Programs.--Notwithstanding any other provision of
law, any payment made to a participating individual under this section
shall not be taken into account as income or resources for the period
of 12 months from receipt, for purposes of determining the eligibility
of such individual for benefits or assistance (or the amount or extent
of benefits or assistance) under any Federal program or any State or
local program financed in whole or in part with Federal funds.
(g) External Partners.--
(1) Selection.--The Secretary, in consultation with the
Director, shall select no more than three external partners to
provide assistance with the design, administration, and
evaluation of the Program.
(2) Qualifications.--An organization selected to be an
external partner shall--
(A) have demonstrated experience in--
(i) studying or implementing cash-transfer
programs;
(ii) executing a mixed-methods study that
incorporates an experiment or quasi-experiment
design; and
(iii) holding highly ethical research
designs with a consistent track record of
approval from institutional review boards; and
(B) have no campaign activity as a research
organization described under section 501(c)(3) of the
Internal Revenue Code of 1986.
(3) Confidentiality.--An external partner, and any employee
of an external partner, shall be treated as a Federal employee
for purposes of section 6103 of the Internal Revenue Code of
1986.
(4) Data collection.--An external partner shall work with
the Director to collect and record data from eligible entities
and participating individuals, as necessary, to complete the
study and reports required under subsection (g), and to conduct
any additional research as the Secretary determines necessary.
(h) Reporting.--
(1) Task force.--The Secretary, in consultation with the
Director and external partners, may establish a task force to
study the results of the qualifying pilot programs funded with
grants under the Program.
(2) Information gathering.--An eligible entity providing
cash payments to an eligible individual through a qualifying
pilot program, funded through the Program, shall collect,
maintain a record of, and promptly submit such record to the
task force the following information:
(A) If the eligible entity is a community
development financial institution, whether the entity
itself is a minority-owned, women-owned, or veteran-
owned entity.
(B) Demographic information of participating
individuals, including race and ethnicity, gender,
disability status, housing status, family composition,
and income level.
(3) Evaluation.--Of the amounts made available to carry out
this section, the Secretary, acting through the Director, may
use such amounts as may be necessary to evaluate the
effectiveness of qualifying pilot programs funded through the
Program, using a methodology that--
(A) includes a random assignment whenever feasible,
or other research methods that allow for the strongest
possible casual inferences when a random assignment is
not feasible; and
(B) generates evidence on the impact of specific
qualifying pilot programs and protocols.
(4) Interim report.--Not later than 24 months after cash
payments are initially made to participating individuals, the
Secretary, in consultation with the Director and external
partners, shall issue an interim report on the Program to
Congress, including the following information:
(A) For each qualifying pilot program, the total
number of participating individuals disaggregated by
race and ethnicity, gender, disability status, housing
status, family composition, and income and assets
(including income level as a percentage of the Federal
poverty line).
(B) With respect to each participating individual,
to the extent applicable--
(i) such individual's employment type and
job status;
(ii) the total amount of cash payments
received by such individual; and
(iii) such individual's zip code.
(C) Any other information that the Secretary
determines to be necessary.
(5) Final report.--Not later than 12 months after the
conclusion of the Program, the Secretary, in consultation with
the Director and the external partners, shall issue a final
report on the Program to Congress, which shall include updated
disclosures and calculations of the information provided in the
interim report under paragraph (4), and a final assessment
comprised of--
(A) a quantitative and qualitative analysis of the
effects of the income subsidies provided under the
qualifying pilot programs on--
(i) financial outcomes of participating
individuals;
(ii) the health and economic well-being of
participating individuals; and
(iii) the social costs of poverty and
income volatility, including connections with
income fluctuation and health, education,
employment, childcare, and other outcomes as
determined appropriate by the Secretary; and
(B) recommendations by the Secretary on the
efficacy and operational pathways of expanding local
basic income subsidies into a Federal guaranteed income
program.
(6) Public availability.--
(A) In general.--As soon as is practicable after
issuing each report under paragraphs (4) and (5), the
Secretary shall make all the information contained in
each such report publicly available.
(B) Confidentiality.--In making information
publicly available under subparagraph (A), the
Secretary shall withhold confidential information.
(i) Rules and Guidance.--The Secretary, in consultation with the
Director, shall issue any rules and guidance that are necessary to
carry out this section, including establishing appropriate compliance
and reporting requirements in addition to the reporting requirements
under subsection (g).
(j) Definitions.--In this section:
(1) Eligible entity.--The term ``eligible entity'' means a
unit of general local government or a community development
financial institution.
(2) Eligible individual.--The term ``eligible individual''
means a resident of the United States.
(3) Federal poverty line.--The term ``Federal poverty
line'' has the meaning given the term ``poverty line'' in
section 673 of the Omnibus Budget Reconciliation Act of 1981
(42 U.S.C. 9902).
(4) Low-income geographic area.--The term ``low-income
geographic area'' has the meaning given such term in section
351 of the Small Business Investment Act of 1958 (15 U.S.C.
689).
(5) Minority-owned.--With respect to a community
development financial institution, the term ``minority-owned''
means a community development financial institution with--
(A) more than 50 percent of the ownership or
control held by not less than one minority; and
(B) more than 50 percent of the net profit or loss
of which accrues to not less than one minority.
(6) Minority.--The term ``minority'' has the meaning given
such term in section 1204(c) of the Financial Institutions
Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 1811
note).
(7) Participating individual.--The term ``participating
individual'' means an eligible individual that has received
cash payments under a qualifying pilot program funded through a
grant from the Program.
(8) Persistent poverty county.--The term ``persistent
poverty county'' means any county that has had 20 percent or
more of its population living in poverty over the past 30
years, as measured by the most recent decennial census and the
most recent Small Area Income and Poverty Estimates of the
Bureau of the Census, as of the date of the enactment of this
Act.
(k) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $500,000,000 for each of the
fiscal years 2023 through 2027.
TITLE II--GUARANTEED INCOME TAX CREDIT
SEC. 201. ESTABLISHMENT OF THE GUARANTEED INCOME TAX CREDIT.
(a) In General.--Subpart C of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by inserting after
section 37 the following new section:
``SEC. 37A. GUARANTEED INCOME TAX CREDIT.
``(a) Allowance of Credit.--In the case of an eligible individual,
there shall be allowed as a credit against the tax imposed by this
subtitle for the taxable year an amount equal to--
``(1) $14,400, plus
``(2) $600 multiplied by the number of dependents (as
defined in section 152) under the age of 18 of the taxpayer.
``(b) Limitation Based on Adjusted Gross Income.--The amount of the
credit allowable under subsection (a) shall be reduced (but not below
zero) by five percent of so much of the taxpayer's adjusted gross
income as exceeds--
``(1) $150,000 in the case of a joint return or a surviving
spouse (as defined in section 2(a)),
``(2) $112,500 in the case of a head of household, and
``(3) $75,000 in the case of a taxpayer not described in
paragraph (1) or (2).
``(c) Inflation Adjustments.--
``(1) In general.--In the case of any taxable year
beginning after 2028, each of the dollar amounts under
subsections (a) and (b) shall be increased by an amount equal
to--
``(A) such dollar amount, multiplied by
``(B) the cost-of-living adjustment determined
under section 1(f)(3) for the calendar year in which
the taxable year begins, determined by substituting
`calendar year 2027' for `calendar year 2016' in
subparagraph (A)(ii) thereof.
``(2) Rounding.--If any increase determined under paragraph
(1) is not a multiple of $50, such increase shall be rounded to
the nearest multiple of $50.
``(d) Eligible Individual.--For purposes of this section--
``(1) In general.--The term `eligible individual' means an
individual--
``(A) who attained 18 years of age before the close
of the taxable year,
``(B) whose principal place of abode was in the
United States for more than one-half of the taxable
year,
``(C) who is not a dependent for whom a deduction
is allowable under section 151 to another taxpayer for
any taxable year beginning in the same calendar year as
such taxable year, and
``(D) who did not claim the benefits of section 911
for the preceding taxable year.
``(2) Limitation on eligibility of nonresident aliens.--The
term `eligible individual' shall not include any individual who
is a nonresident alien individual for any portion of the
preceding taxable year, unless such individual is treated for
such taxable year as a resident of the United States for
purposes of this chapter by reason of an election under
subsection (g) or (h) of section 6013.
``(3) Identification number requirement.--No credit shall
be allowed under this section to an eligible individual who
does not include on the return of tax for the taxable year--
``(A) such individual's taxpayer identification
number,
``(B) if the individual was married during the
preceding taxable year (within the meaning of section
7703), the taxpayer identification number of such
individual's spouse, and
``(C) taxpayer identification number of such
individual's dependents.
``(4) Treatment of military personnel stationed outside of
the united states.--For purposes of paragraph (1)(B), the
principal place of abode of a member of the Armed Forces of the
United States shall be treated as in the United States during
any period during which such member is stationed outside the
United States while serving on extended active duty with the
Armed Forces of the United States. For purposes of the
preceding sentence, the term `extended active duty' means any
period of active duty pursuant to a call or order to such duty
for a period in excess of 90 days or for an indefinite period.
``(e) Taxable Year Must Be Full Taxable Year.--Except in the case
of a taxable year closed by reason of the death of the taxpayer, no
credit shall be allowable under this section in the case of a taxable
year covering a period of less than 12 months.
``(f) Restrictions on Taxpayer Who Improperly Claimed Credit in
Prior Year.--Rules similar to subsection (k) of section 32 shall apply
for purposes of this section.
``(g) Reconciliation of Credit and Advance Payments.--The amount of
the credit allowed under this section for any taxable year shall be
reduced (but not below zero) by the aggregate amount of any advance
payments of such credit under section 7527B for such taxable year.''.
(b) Advance Payment of Guaranteed Income Tax Credit.--Chapter 77 of
the Internal Revenue Code of 1986 is amended by inserting after section
7527A the following new section:
``SEC. 7527B. ADVANCE PAYMENT OF GUARANTEED INCOME TAX CREDIT.
``(a) In General.--The Secretary shall establish a program for
making advance payments to eligible taxpayers which equal, in the
aggregate during any calendar year, the annual advance amount
determined with respect to such taxpayer for such calendar year. The
advance payments made to such taxpayer for any calendar year shall be
in equal amounts.
``(b) Eligible Taxpayer.--The term `eligible taxpayer' has the
meaning given `eligible individual' in section 37A and such taxpayer
has made an election under subsection (d).
``(c) Annual Advance Amount.--For the purposes of this section, the
term `annual advance amount' means, with respect to an eligible
taxpayer for any calendar year, an amount equal to the amount of credit
which the Secretary has determined will be allowed to such taxpayer
under section 37A for the taxpayer's taxable year beginning in such
calendar year.
``(d) Election of Advance Payment.--
``(1) In general.--A taxpayer may elect to receive an
advance payment of the credit allowed under section 37A for any
taxable year--
``(A) by including such election on a timely filed
return for the preceding taxable year, or
``(B) through the online portal established in
paragraph (2).
``(2) Online portal.--The Secretary shall establish an
online portal which allows non-filing taxpayers to--
``(A) elect to receive payments under this section,
and
``(B) provide any information the Secretary
determines necessary.
``(e) Internal Revenue Service Notification.--The Internal Revenue
Service shall take such steps as may be appropriate to ensure that
taxpayers who are eligible to receive the credit under section 37A are
aware of the availability of the advance payment of such credit under
this section.
``(f) Authority.--The Secretary may prescribe such regulations or
other guidance as may be appropriate or necessary for the purposes of
carrying out this section.''.
(c) Other Rules.--
(1) Timing and manner of payments.--
(A) Timing.--The Secretary shall, subject to the
provisions of this title, refund or credit any
overpayment attributable to this section as rapidly as
possible.
(B) Alternate information.--For purposes of
disbursing refunds payable under this section, if an
individual eligible to receive a credit under section
37A (as added by subsection (a)) has not, as of any
applicable date, filed a tax return for the applicable
taxable year, the Secretary shall--
(i) use return information with respect to
such individual for the taxable year preceding
such applicable taxable year; or
(ii) in the case of an individual who has
not filed a tax return for the applicable year
or the taxable year described in clause (i),
use any applicable information provided by
relevant agencies.
(C) Coordination and notification.--For purposes of
subparagraph (B)(i), the Secretary shall--
(i) coordinate with the heads of relevant
Federal agencies to receive applicable
information with respect to any individuals who
may be eligible to receive a refund payment
pursuant to this section; and
(ii) establish an online portal that
individuals described in paragraph (B) may use
to report any information required, as
determined by the Secretary, to determine the
amount of any refund payments for which such
individuals may be eligible, including methods
specifically designed to identify and account
for foster youth and individuals experiencing
homelessness or housing insecurity.
(D) Delivery of payments.--Notwithstanding any
other provision of law, the Secretary may certify and
disburse refunds immediately payable under this
subsection--
(i) electronically to any account to which
the payee authorized the delivery of a refund
of taxes under this title or of a Federal
payment (as defined in section 3332 of title
31, United States Code); or
(ii) through such other means as are
determined appropriate by the Secretary
including through the use of mailed paper
checks, stored value cards, and online payment
systems including FedAccounts as established
under section 301.
(E) Waiver of certain rules.--Notwithstanding
section 3325 of title 31, United States Code, or any
other provision of law, with respect to any payment of
a refund under this subsection, a disbursing official
in the executive branch of the United States Government
may modify payment information received from an officer
or employee described in section 3325(a)(1)(B) of such
title for the purpose of facilitating the accurate and
efficient delivery of such payment. Except in cases of
fraud or reckless neglect, no liability under sections
3325, 3527, 3528, or 2529 of title 31, United States
Code, shall be imposed with respect to payments made
under this subparagraph.
(2) No interest.--No interest shall be allowed on any
overpayment attributable to a payment deemed made under this
section.
(3) Notice to taxpayer.--Not later than 15 days after the
date on which the Secretary distributed any payment to a
taxpayer pursuant to this section, notice shall be sent by mail
to such taxpayer's last known address. Such notice shall
indicate the method by which such payment was made, the amount
of such payment, and a phone number or website portal for the
appropriate contact at the Internal Revenue Service to report
any failure to receive such payment.
(4) Treatment of possessions.--Rules similar to the rules
of subsection (c) of section 2201 of the CARES Act (Public Law
116-136) shall apply for the purposes of section 37A of such
Code (as added by subsection (a)).
(5) Exception from reduction or offset.--Any credit or
refund allowed or made to any individual by reason of section
37A of the Internal Revenue Code of 1986 (as added by
subsection (a)) or by reason of paragraph (1) of this
subsection shall not be--
(A) subject to reduction or offset pursuant to
section 3716 or 3720A of title 31, United States Code;
(B) subject to reduction or offset pursuant to
subsection (c), (d), (e), or (f) of section 6402 of the
Internal Revenue Code of 1986; or
(C) reduced or offset by other assessed Federal
taxes that would otherwise be subject to levy or
collection.
(6) Prohibition on garnishment.--
(A) Definitions.--In this paragraph, the terms
``financial institution'', ``freeze'', ``garnish'', and
``garnishment order'' have the meanings given the terms
in section 212.3 of title 31, Code of Federal
Regulations, as in effect on the date of enactment of
this Act.
(B) Prohibition.--No financial institution may
garnish or freeze any portion of a refund made by any
debtor by reason of section 37A of the Internal Revenue
Code of 1986 (as added by subsection (a)) or by reason
of paragraph (1) pursuant to a garnishment order.
(7) Waiver of fees by insured depository institutions.--No
insured depository institution, as defined in section 3 of the
Federal Deposit Insurance Act (12 U.S.C. 1813), may impose a
fee on a person for cashing any check for a refund payable
under section 37A of the Internal Revenue Code of 1986 (as
added by subsection (a)).
(8) Public awareness campaign.--Rules similar to the rules
of subsection (e) of section 2201 of the CARES Act shall apply
for the purposes of section 37A of such Code (as added by
subsection (a)).
(9) Regulations.--The Secretary shall prescribe such
regulations or other guidance as may be necessary to carry out
the purposes of this section, including any such measures are
deemed appropriate to avoid allowing duplicative payments to a
taxpayer.
(d) Conforming Amendments.--
(1) Section 6211(b)(4)(A) of the Internal Revenue Code of
1986 is amended by inserting ``37A,'' after ``36B,''.
(2) Section 6213(g)(2) of such Code is amended--
(A) in subparagraph (F), by inserting ``or section
37A'' after ``credit)'';
(B) in subparagraph (G), by inserting ``or 37A''
after ``section 32'';
(C) by amending subparagraph (K) to read as
follows:
``(K) an omission of information required by
section 32(k)(2) or 36(e) or an entry on the return
claiming--
``(i) the credit under section 32 for a
taxable year for which the credit is disallowed
under subsection (k)(1) thereof, or
``(ii) the credit under section 37A for a
taxable year for which the credit is disallowed
under subsection (d) thereof,''; and
(D) in subparagraph (L), by ``37A,'' after ``32,''.
(3) The table of sections for subpart C of part IV of
subchapter A of chapter 1 of such Code is amended by inserting
after the item relating to section 37 the following:
``Sec. 37A. Guaranteed income tax credit.''.
(4) The table of sections for chapter 77 of such Code is
amended by inserting after the item relating to section 7527A
the following:
``Sec. 7527B. Advance payment of guaranteed income tax credit.''.
(e) Effective Date.--The amendments made by this section shall
apply to the taxable years beginning after January 1, 2027.
TITLE III--FEDACCOUNTS
SEC. 301. CREATION AND INTEGRATION OF FEDACCOUNTS.
(a) Definitions.--In this section:
(1) Digital dollars.--The term ``digital dollars'' means
dollar balances consisting of digital ledger entries recorded
as liabilities in the accounts of any Federal Reserve bank.
(2) Fedaccount.--The term ``FedAccount'' means a personal,
no-fee central bank account supported by a Federal Reserve bank
for any eligible individuals or on behalf of any person for the
purpose of holding digital dollar balances.
(3) Member bank.--The term ``member bank'' means any
national bank, State bank, or bank or trust company that is a
member of a Federal Reserve bank.
(4) Pass-through fedaccount.--The term ``pass-through
FedAccount'' means a FedAccount maintained by a member bank on
behalf of any person, entitling that person to a pro rata share
of a pooled reserve balance that the member bank maintains at
any Federal Reserve bank.
(5) Postal retail facility.--The term ``postal retail
facility''--
(A) means a post office, post office branch, post
office classified station, or other facility that is
operated by the Postal Service, the primary function of
which is to provide retail postal services; and
(B) does not include a contractor-operated facility
offering postal services.
(6) Postal service.--The term ``Postal Service'' means the
United States Postal Service.
(b) Authority and Mandate for Federal Reserve Banks To Establish
and Maintain FedAccounts for the General Public.--
(1) Authorization.--Subject to restrictions, limitations,
and regulations that may be imposed by the Board of Governors
of the Federal Reserve System, a Federal Reserve bank shall
maintain FedAccounts.
(2) Mandate.--Not later than January 1, 2027, a Federal
Reserve bank shall make available FedAccounts to--
(A) residents of the United States; and
(B) businesses domiciled in the United States.
(3) Terms of fedaccounts.--FedAccounts--
(A) shall not be subject to any account fees,
minimum balances, or maximum balances, and shall pay
interest at a rate not below the greater of the rate of
interest on required reserves and the rate of interest
on excess reserves;
(B) shall provide debit cards, online account
access, automatic bill-pay, mobile banking, customer
service and other such services as the Board of
Governors of the Federal Reserve System determines
appropriate in the public interest, provided that
FedAccounts shall not include overdraft coverage;
(C) shall provide access to automatic teller
machines to be maintained on behalf of the Board of
Governors of the Postal Service at postal retail
facilities;
(D) shall be branded in all account statements,
marketing materials, and other communications as
``FedAccounts'' maintained by the Federal Reserve bank
on behalf of the United States of America;
(E) may not be closed or restricted on the basis of
profitability considerations; and
(F) shall provide account holders with reasonable
protections against losses caused by fraud or security
breaches.
(4) Bank secrecy act.--In establishing and maintaining
FedAccounts, each Federal Reserve shall comply with--
(A) section 21 of the Federal Deposit Insurance Act
(12 U.S.C. 1829b);
(B) chapter 2 of title I of Public Law 91-508 (12
U.S.C. 1951 et seq.); and
(C) subchapter II of chapter 53 of title 31, United
States Code.
(5) Privacy.--
(A) Fedaccounts.--Section 552a of title 5, United
States Code (commonly known as the Privacy Act of
1974), shall apply to FedAccounts.
(B) Federal reserve banks.--The privacy obligations
applicable to each Federal Reserve bank and its
employees, including with respect to criminal and civil
penalties, shall mirror those applicable to Federal tax
returns under sections 6103, 7213(a)(1), 7213A, and
7431 of the Internal Revenue Code of 1986.
(6) Regulations.--The Board of Governors of the Federal
Reserve, in consultation with the Secretary, shall promulgate
regulations in order to carry out this subsection.
(c) Authority and Mandate for Member Banks, State Nonmember Banks
and Credit Unions To Offer and Maintain Pass-Through FedAccounts.--
(1) Obligations of member banks.--
(A) In general.--Member banks shall open and
maintain pass-through FedAccounts for all interested
persons who elect to deposit funds into pass-through
FedAccounts, including persons eligible to receive
guaranteed income tax credit payments from the United
States pursuant to section 301 of this Act.
(B) Maintenance of assets.--
(i) In general.--Each member bank shall
establish and maintain a separate legal entity
for the exclusive purpose of holding all assets
and maintaining all liabilities associated with
pass-through FedAccounts.
(ii) Contents.--The assets of any entity
described in clause (i) shall consist
exclusively of a balance maintained in a master
account at a Federal Reserve bank, and the
liabilities or obligations of the entity shall
consist exclusively of an equal quantity of
balances maintained by holders of pass-through
FedAccounts.
(iii) Capital or liquidity regulation.--The
assets and liabilities of any legal entity
described in clause (i) shall not be deemed
assets or liabilities of the member bank or its
affiliates for the purposes of any capital or
liquidity regulation promulgated by Federal or
State banking authorities.
(iv) Online application requirement for
large banks.--Member banks with total
consolidated assets greater than
$10,000,000,000 shall promptly offer
application, through online or telephonic
means, for pass-through FedAccounts.
(2) Terms of pass-through fedaccounts.--Pass-through
FedAccounts offered by member banks--
(A) shall not be subject to any account fees,
minimum balances, or maximum balances, and shall pay
interest at a rate not below the greater of the rate of
interest on required reserves and the rate of interest
on excess reserves;
(B) shall provide functionality and service levels
no less favorable than those that the member bank
offers for its existing transaction accounts, including
with respect to debit cards, automated teller machines,
online account access, automatic bill pay, mobile
banking, customer service and such other services as
the Board of Governors of the Federal Reserve System
determines appropriate in the public interest, provided
that FedAccounts shall not include overdraft coverage;
(C) shall be prominently branded in all account
statements, marketing materials, and other
communications as ``pass-through FedAccounts''
maintained by the member bank on behalf of the Federal
Reserve;
(D) may not be closed or restricted by the bank on
the basis of profitability considerations; and
(E) shall provide account holders with reasonable
protection against losses caused by fraud or security
breaches.
(3) Reimbursement for costs at member banks.--
(A) In general.--Each member bank with total
consolidated assets of not greater than $10,000,000,000
shall be reimbursed each calendar quarter by the
relevant Federal Reserve bank for the operational costs
incurred by the member bank in offering pass-through
FedAccounts.
(B) Regulations.--The Board of Governors of the
Federal Reserve System shall promulgate such
regulations as necessary to carry out this subsection.
(4) Obligations of state nonmember banks and credit
unions.--
(A) In general.--The Federal Reserve banks shall
permit State nonmember banks and credit unions to open
master accounts for the exclusive purpose of offering
pass-through FedAccounts with the separate entity
structure described in paragraph (1), if the pass-
through FedAccount complies with the terms set forth in
paragraph (2).
(B) Reimbursement.--Each State nonmember bank or
credit union electing to offer pass-through FedAccounts
shall be entitled to cost reimbursement in accordance
with paragraph (3).
(5) Authority of the board.--Member banks shall be subject
to such regulations and obligations as may be imposed by the
Board of Governors of the Federal Reserve System in connection
with maintaining pass-through FedAccounts.
(d) Limited Branches.--In areas where access to physical member
bank branches is limited, including in low- or moderate-income
geographies, designated disaster areas, distressed or underserved non-
metropolitan middle-income geographies, as designated by the Federal
Financial Institutions Examination Council, Federal Reserve banks may
partner with postal retail facilities to ensure access and availability
to application and account services for all residents and citizens of
the United States and to businesses domiciled in the United States.
(e) Coordination of FedAccounts and Postal Banking.--The Board of
Governors of the Federal Reserve System, after consultation with the
Postermaster General, shall work to improve public banking options to
all individuals, and specifically making sure that payments from the
guaranteed income tax credit are able to reach the most people in a
timely manner by expanding such financial services to the unbanked and
underbanked.
(f) Annual Reporting.--The Comptroller General of the United
States, in consultation with the Secretary, shall submit to Congress an
annual report that includes the demographics, number of participants,
and average balances and uses for all the new products and services
established under this section.
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