FDIC Board Accountability Act

119th Congress Introduced by Andy Barr and 3 co-sponsors

H.R. 3446 mandates professional qualifications for FDIC Board members and term limits, enhancing accountability and expertise to stabilize the U.S. banking system.

Reported by the Committee on Financial Services. H. Rept. 119-244.

Purpose and Intent

The FDIC Board Accountability Act (H.R. 3446) aims to enhance the governance and accountability of the Federal Deposit Insurance Corporation (FDIC) Board of Directors. Introduced on May 15, 2025, by Representative Bill Huizenga (MI-04), the bill seeks to ensure that the FDIC Board is composed of members with relevant professional experience, thereby promoting informed decision-making and reducing potential politicization within the agency.

Key Provisions

The bill proposes several significant changes to the membership requirements and governance structure of the FDIC Board:

Professional Qualifications:

At least one board member appointed by the President must have experience in state bank supervision.
At least one board member must have experience working in or supervising depository institutions with assets under $10 billion.

Voting Structure:

The Comptroller of the Currency will remain a voting member of the Board.
The Director of the Consumer Financial Protection Bureau (CFPB) will transition from a voting member to a non-voting observer, allowing the CFPB to focus on consumer protection without influencing prudential regulation.

Term Limits:

Board members will be limited to serving no more than two terms or a maximum of 12 years total. This provision aims to bring fresh perspectives and reduce the risk of entrenched partisanship.

Impact

The FDIC plays a crucial role in maintaining the stability of the U.S. banking system. By requiring specific expertise among Board members and implementing term limits, H.R. 3446 seeks to:

Enhance Accountability: The bill addresses concerns about recent governance issues within the FDIC, particularly instances of politicization that could undermine the agency's effectiveness.

Promote Diversity of Experience: By ensuring representation from smaller banks and state supervisory agencies, the bill aims to reflect the diverse landscape of the banking sector.

Strengthen Institutional Independence: The changes to the voting structure are designed to restore balance within the Board, allowing for a more stable and independent FDIC capable of addressing systemic risks.

Legislative Process

Reported by Committee: The bill was reported favorably by the Committee on Financial Services on September 8, 2025 (H. Rept. 119-244).

Committee Votes: The bill was ordered to be reported by a vote of 26-23 on July 23, 2025.

Related Hearings: The bill was discussed in hearings on April 29, 2025, and July 15, 2025, focusing on regulatory issues and the implications of the Dodd-Frank Act.

Conclusion

H.R. 3446 represents a significant effort to reform the governance of the FDIC Board, aiming to enhance its accountability and effectiveness in overseeing the U.S. banking system. By instituting professional qualifications and term limits, the bill seeks to ensure that the Board is well-equipped to navigate the complexities of modern banking regulation.

Bill