Financial Stability Oversight Council Improvement Act of 2025
Sponsored By: Representative Foster, Bill [D-IL-11]
Passed House
Summary
Requires the Financial Stability Oversight Council to determine, after consulting the company and its primary regulator, that alternative actions are impracticable or insufficient before voting to designate a U.S. nonbank financial company. It also directs the Council to consider the use of new or heightened standards under section 120 or a written plan promptly submitted by the company as possible alternatives to designation.
Show full summary
- Nonbank financial companies: Companies gain a formal chance to submit a written plan and must be consulted before a designation vote. That gives firms an explicit route to avoid designation if alternatives are viable.
- Primary financial regulatory agencies: Supervising agencies must be consulted and their actions considered. Agencies may be asked to apply heightened standards under section 120 instead of triggering a Council designation.
- The Council and designation process: The change adds a mandatory preliminary finding that other actions are impracticable or insufficient before any vote. This formal step makes the designation process more consultative and redirects focus toward agency tools and company remedies.
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 0 benefits, 0 costs, 1 mixed.
Extra step before labeling nonbanks risky
If enacted, the Financial Stability Oversight Council would need a new first step before it could vote on a proposed action for a U.S. nonbank financial company. The Council would first consult the company and its main regulator. It would have to find that other steps, including tougher standards under section 120 or a written plan from the company submitted quickly, are impracticable or not enough to fix the risk. This would make that finding a required first step and link other Council procedures to it. This would give companies and regulators time to act first, but it would risk delaying Council actions meant to protect financial stability.
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
Lucas
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
Scott, David
GA • D
Sponsored 9/2/2025
Rep. Schneider, Bradley Scott [D-IL-10]
IL • D
Sponsored 9/8/2025
Gonzalez, V.
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
Himes
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