Legis Daily

Fed Integrity and Independence Act of 2025

USA119th CongressHR-5499| House 
| Updated: 9/18/2025
Juan Vargas

Juan Vargas

Democratic Representative

California

Cosponsors (4)
Joyce Beatty (Democratic)Sean Casten (Democratic)Nydia M. Velázquez (Democratic)Cleo Fields (Democratic)

Financial Services Committee

  • Introduced
  • In Committee
  • On Floor
  • Passed Chamber
  • Enacted
This legislation, known as the "Fed Integrity and Independence Act of 2025," seeks to bolster the independence of the Federal Reserve System by preventing certain employees from holding dual appointments. Congress finds that the Federal Reserve's independence from political interference is fundamental to its effective operation, ensuring monetary policy decisions focus on long-run goals free from political pressures. The existing structure, with staggered 14-year terms for Governors, was designed to protect this crucial independence. Therefore, it is deemed inappropriate for any employee appointed by the President to also serve as a member of the Board of Governors, regardless of leave status. To achieve this, the bill amends the Federal Reserve Act to explicitly prohibit members of the Board of Governors from simultaneously holding any other office, position, or employment for which they are appointed by the President, including under a leave of absence. This prohibition is extended to presidents of Federal Reserve Banks and the First Vice President of the Federal Reserve Bank of New York. Furthermore, the Act includes a rule of application stating that any individual currently serving in these Federal Reserve roles who is also holding a Presidentially-appointed position will be terminated from their Federal Reserve position on the date of the Act's enactment, ensuring immediate compliance with the new restrictions.
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Timeline
Sep 16, 2025

Latest Companion Bill Action

S 119-2817
Introduced in Senate
Sep 18, 2025
Introduced in House
Sep 18, 2025
Referred to the House Committee on Financial Services.
  • September 16, 2025

    Latest Companion Bill Action

    S 119-2817
    Introduced in Senate


  • September 18, 2025
    Introduced in House


  • September 18, 2025
    Referred to the House Committee on Financial Services.

Finance and Financial Sector

Fed Integrity and Independence Act of 2025

USA119th CongressHR-5499| House 
| Updated: 9/18/2025
This legislation, known as the "Fed Integrity and Independence Act of 2025," seeks to bolster the independence of the Federal Reserve System by preventing certain employees from holding dual appointments. Congress finds that the Federal Reserve's independence from political interference is fundamental to its effective operation, ensuring monetary policy decisions focus on long-run goals free from political pressures. The existing structure, with staggered 14-year terms for Governors, was designed to protect this crucial independence. Therefore, it is deemed inappropriate for any employee appointed by the President to also serve as a member of the Board of Governors, regardless of leave status. To achieve this, the bill amends the Federal Reserve Act to explicitly prohibit members of the Board of Governors from simultaneously holding any other office, position, or employment for which they are appointed by the President, including under a leave of absence. This prohibition is extended to presidents of Federal Reserve Banks and the First Vice President of the Federal Reserve Bank of New York. Furthermore, the Act includes a rule of application stating that any individual currently serving in these Federal Reserve roles who is also holding a Presidentially-appointed position will be terminated from their Federal Reserve position on the date of the Act's enactment, ensuring immediate compliance with the new restrictions.
View Full Text

Suggested Questions

Get AI-generated questions to help you understand this bill better

Timeline
Sep 16, 2025

Latest Companion Bill Action

S 119-2817
Introduced in Senate
Sep 18, 2025
Introduced in House
Sep 18, 2025
Referred to the House Committee on Financial Services.
  • September 16, 2025

    Latest Companion Bill Action

    S 119-2817
    Introduced in Senate


  • September 18, 2025
    Introduced in House


  • September 18, 2025
    Referred to the House Committee on Financial Services.
Juan Vargas

Juan Vargas

Democratic Representative

California

Cosponsors (4)
Joyce Beatty (Democratic)Sean Casten (Democratic)Nydia M. Velázquez (Democratic)Cleo Fields (Democratic)

Financial Services Committee

Finance and Financial Sector

  • Introduced
  • In Committee
  • On Floor
  • Passed Chamber
  • Enacted