Federal Reserve Regulatory Oversight Act

HR 2418, the Federal Reserve Regulatory Oversight Act, requires the Federal Reserve Board and Federal Reserve Banks to cover non-monetary policy administrative costs through fees instead of direct congressional appropriations. Specifically, it mandates that costs related to supervising banks (including examinations, stress tests, and regulatory reporting), staff training, and operational support must be recovered via fees collected and deposited as offsetting collections to the Fed's budget account. This applies only to non-monetary policy activities (like bank supervision), excluding monetary policy functions such as interest rate decisions. The new rules take effect for expenses paid and fees collected on or after October 1, 2025.