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119-hr-3682119th CongressWALLET

Financial Stability Oversight Council Improvement Act of 2025

Sponsored By: Representative Foster, Bill [D-IL-11]

Passed House

Summary

Adds an "initial determination" step that requires the Financial Stability Oversight Council to rule out other actions before voting to designate a U.S. nonbank financial company for enhanced supervision. The Council must consult the company and the company’s primary federal regulator and find that alternatives, including a company-submitted written plan, are impracticable or insufficient to mitigate the threat to financial stability.

Show full summary
  • Nonbank financial companies get a formal chance to be consulted and to submit a written plan before a designation vote. That can give firms more time and may reduce the chance of immediate designation.
  • The Council and the company’s primary regulator must make a new legal finding that other actions are impracticable or insufficient. This raises the evidentiary bar for moving to enhanced supervision.
  • Because the law requires ruling out alternatives first, designations and the imposition of new or heightened standards may take longer and could be harder to impose in urgent situations.

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 0 benefits, 0 costs, 1 mixed.

More checks before labeling risky nonbanks

The bill would add extra steps before the Financial Stability Oversight Council could designate a U.S. nonbank financial company for enhanced supervision. Before any vote, the Council would consult the company and its main federal regulator. The Council would also have to find that other actions are impracticable or not enough to reduce the risk to U.S. financial stability. Those actions include tougher standards under section 120 or a prompt written plan from the company. Related cross-references would be updated so this new step applies. This would make designations harder and slower. It would take effect upon enactment.

Sponsors & CoSponsors

Sponsor

Foster, Bill [D-IL-11]

IL • D

Cosponsors

  • Rep. Huizenga, Bill [R-MI-4]

    MI • R

    Sponsored 6/3/2025

  • Rep. Gottheimer, Josh [D-NJ-5]

    NJ • D

    Sponsored 6/17/2025

  • Rep. Kim, Young [R-CA-40]

    CA • R

    Sponsored 7/2/2025

  • Rep. Sherman, Brad [D-CA-32]

    CA • D

    Sponsored 7/10/2025

  • Rep. Pettersen, Brittany [D-CO-7]

    CO • D

    Sponsored 7/10/2025

  • Rep. Torres, Ritchie [D-NY-15]

    NY • D

    Sponsored 7/15/2025

  • Rep. Lucas, Frank D. [R-OK-3]

    OK • R

    Sponsored 7/15/2025

  • Rep. Meuser, Daniel [R-PA-9]

    PA • R

    Sponsored 7/16/2025

  • Rep. Cleaver, Emanuel [D-MO-5]

    MO • D

    Sponsored 7/17/2025

  • Rep. Houlahan, Chrissy [D-PA-6]

    PA • D

    Sponsored 8/29/2025

  • Rep. Scott, David [D-GA-13]

    GA • D

    Sponsored 9/2/2025

  • Rep. Schneider, Bradley Scott [D-IL-10]

    IL • D

    Sponsored 9/8/2025

  • Rep. Gonzalez, Vicente [D-TX-34]

    TX • D

    Sponsored 9/9/2025

  • Rep. Wagner, Ann [R-MO-2]

    MO • R

    Sponsored 9/15/2025

  • Rep. Bynum, Janelle S. [D-OR-5]

    OR • D

    Sponsored 9/15/2025

  • Rep. Downing, Troy [R-MT-2]

    MT • R

    Sponsored 9/15/2025

  • Rep. De La Cruz, Monica [R-TX-15]

    TX • R

    Sponsored 9/16/2025

  • Rep. Lawler, Michael [R-NY-17]

    NY • R

    Sponsored 9/16/2025

  • Rep. Himes, James A. [D-CT-4]

    CT • D

    Sponsored 9/16/2025

  • Rep. Nunn, Zachary [R-IA-3]

    IA • R

    Sponsored 9/16/2025

Roll Call Votes

No roll call votes available for this bill.

View on Congress.gov
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