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Bill

S 5158

Federal Insurance Office Abolishment Act of 2026

119th Congress Introduced by Marsha Blackburn and 3 co-sponsors

Abolish the Federal Insurance Office and Director, reassigning insurance authority to the Treasury and other bodies, ensuring Treasury powers remain intact.

Introduced in Senate
0
WeVote Research Nonpartisan
Bill Summary · S 5158

Overview

  • Bill: S.5158 (119th Congress, 2nd Session)
  • Title: Federal Insurance Office Abolishment Act of 2026
  • Purpose: Abolish the Federal Insurance Office (FIO) within the U.S. Department of the Treasury and remove its statutory status and related references across several statutes. The act also makes related amendments to other statutes to reflect the abolition and to adjust regulatory language accordingly.

Main purpose and intent

  • Eliminate the Federal Insurance Office and discontinue the position of its Director.
  • Ensure that the Treasury Department’s authority on insurance matters is not repealed or limited by this abolition.
  • Reframe certain references in major financial reform and regulatory statutes to remove FIO and, in some cases, replace it with the Treasury or other entities (e.g., the Secretary of the Treasury, the Board of Governors of the Federal Reserve System).

Key provisions and changes

  1. Abolishment of FIO (Section 2)

    • The Federal Insurance Office and its Director are abolished.
    • The statute explicitly instructs amendments to strike FIO and its director from relevant sections.
    • A note clarifies that the abolition does not repeal or limit any authority of the Secretary of the Treasury relating to insurance.

  2. Related amendments to major statutes (Section 3)

    • Dodd-Frank Wall Street Reform and Consumer Protection Act amendments
      • Several sections are revised to remove references to the Federal Insurance Office and to reassign appropriate authorities to other entities (e.g., replace FIO with the Secretary of the Treasury or other appropriate bodies).
      • Structural changes include renumbering and re-designating subsections to reflect the absence of FIO.
    • Economic Growth, Regulatory Relief, and Consumer Protection Act amendments
      • References to the Secretary of the Treasury and the Board of Governors of the Federal Reserve System are updated to omit the Director of the Federal Insurance Office.
      • Ensures consistency with the abolition in how regulatory coordination and input are described.

  3. Scope of changes

    • Substantive references to FIO in federal financial regulations are removed or realigned.
    • The Treasury’s authority in insurance-related matters is preserved (and not weakened) by making clear the abolition does not repeal Treasury powers.

Who or what would be affected

  • Directly affected: Federal Insurance Office and its Director (abolished).
  • Indirectly affected:
    • Federal regulatory framework relying on FIO for insurance-related matters, which would be restructured to refer to other agencies (primarily the Treasury, the Federal Reserve, or other designated entities) per the amendments.
    • Agencies and stakeholders interacting with FIO for insurance oversight and data (e.g., regulated entities, consumer protection frameworks) would experience a realignment of oversight responsibilities and reporting structures.
  • Treasury and the broader federal regulatory network would retain authority over insurance-related matters, per the bill’s saving clause.

Procedural and timeline aspects

  • Introduced in the Senate on July 29, 2026, by Senator Cruz (with co-sponsors Mike Lee, Marsha Blackburn, and Rand Paul; later joined by Ted Cruz as sponsor).
  • Status: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
  • The bill would not take effect until enacted into law; it would require passage by both chambers and enacted signature to remove FIO and implement the related statutory revisions.

Potential impacts and considerations

  • Regulatory landscape: Could streamline or consolidate insurance-related regulatory functions under the Treasury and other federal regulators, potentially reducing duplication.
  • Oversight and data: Stakeholders accustomed to FIO’s role in data collection and analysis pertaining to the insurance market may experience changes in data reporting requirements and oversight processes.
  • Implementation transition: Requires careful coordination to ensure no gaps in insurance oversight and to reassign authorities without altering Treasury’s core insurance powers.

Note: This summary reflects the bill’s text and stated amendments. It does not assess policy outcomes or partisan implications.

Compiled from official sources — confirm details with the bill’s official record.

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