PRIME Act

Senate Bill

S. 2409

119th Congress

PRIME Act

In Committee

Introduced:Jul 23, 2025

Primary Sponsor

Rick Scott

R - FL

Cosponsors

0

Quick Stats

Policy Area

Finance and Financial Sector

Summary

This bill aims to change how the Federal Reserve System (the Fed) invests and reports on its activities. It would prevent the Fed from purchasing long-term Treasury bills and mortgage-backed securities, and from holding common stock. The bill also requires the Fed to use specific accounting standards and report annually to Congress on the impact of its policies on the middle class and small businesses.

Latest Action

Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Introduced7/23/2025

StatusRead twice and referred to the Committee on Agriculture, Nutrition, and Forestry.

ChamberSenate

Data from Congress.gov

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Vote Prediction

PRIME Act

This bill aims to change how the Federal Reserve System (the Fed) invests and reports on its activities. It would prevent the Fed from purchasing long-term Treasury bills and mortgage-backed securities, and from holding common stock. The bill also requires the

Community Breakdown

Pass

0%

Fail

0%

0 predictions

This bill aims to change how the Federal Reserve System (the Fed) invests and reports on its activities. It would prevent the Fed from purchasing long-term Treasury bills and mortgage-backed securities, and from holding common stock. The bill also requires the Fed to use specific accounting standards and report annually to Congress on the impact of its policies on the middle class and small businesses.

Bill Number: 2409
Introduced: 7/23/2025
Status: Read twice and referred to the Committee on Agriculture, Nutrition, and Forestry.
Policy Area: Finance and Financial Sector

Data from Congress.gov

AI-generated summary

Fact Sheet

Title: PRIME Act
Bill Number: 2409
Sponsor: No sponsor
Status: Read twice and referred to the Committee on Agriculture, Nutrition, and Forestry.
Introduced: 7/23/2025
Summary: This bill aims to change how the Federal Reserve System (the Fed) invests and reports on its activities. It would prevent the Fed from purchasing long-term Treasury bills and mortgage-backed securities, and from holding common stock. The bill also requires the Fed to use specific accounting standard

Data from Congress.gov

AI Summary

Plain-English explanation of this bill

This bill aims to change how the Federal Reserve System (the Fed) invests and reports on its activities. It would prevent the Fed from purchasing long-term Treasury bills and mortgage-backed securities, and from holding common stock. The bill also requires the Fed to use specific accounting standards and report annually to Congress on the impact of its policies on the middle class and small businesses.

Last updated: 12/30/2025

Official Summary

Congressional Research Service summary

Regular Order for Investments of the Federal Reserve Act or the ROI of the Federal Reserve ActThis bill establishes requirements for Federal Reserve System investments, accounting standards, and reports.Under the bill, Federal Reserve banks are prohibited from purchasing Treasury bills with a term of maturity of more than three years and mortgage-backed securities. Federal Reserve banks are also prohibited from holding shares of common stock that are acquired on or after the date of enactment of this bill.The Federal Reserve Board, Federal Reserve banks, and the Federal Open Market Committee must use generally accepted accounting principles and specified valuation methods in certain filings, reports, and audits.Finally, the board and Federal Reserve banks must annually report to Congress on (1) the status of the middle class and the impact their policies and programs have had on the middle class, and (2) the impact their actions have had on small business lending and lines of credit since 2000.

Key Points

Main provisions of the bill

Prohibits the Federal Reserve from purchasing Treasury bills with a term of more than 3 years and mortgage-backed securities
Prohibits the Federal Reserve from holding shares of common stock acquired after the bill's enactment
Requires the Federal Reserve to use certain accounting standards and valuation methods in its filings and reports
Requires the Federal Reserve to report annually to Congress on the impact of its policies on the middle class and small business lending

How This Impacts Americans

Potential effects on citizens and communities

If this bill becomes law, it would significantly change the Federal Reserve's investment practices and reporting requirements. It could impact the Fed's ability to conduct monetary policy, as well as how the public and Congress can evaluate the Fed's actions and their effects on the economy, the middle class, and small businesses.