Description:
Under current law, the Financial Stability Oversight Council (FSOC) is composed of ten voting members; the heads of nine federal financial agencies and an independent member with insurance expertise appointed by the President, with the advice and consent of the Senate. The independent member serves a six year term. H.R. 3110 would allow the independent member to continue to serve on the FSOC for up to 18 months after the end of the member’s term if a successor has not been appointed and confirmed.
Based on information from the FSOC, CBO estimates that implementing H.R. 3110 would cost less than $500,000. That amount would cover the additional personnel costs for the independent member until a successor is appointed. Under current law, expenses of the FSOC are considered to be expenses of the Office of Financial Research (OFR), which is direct spending. The OFR is authorized to levy assessments, which are recorded in the budget as revenues, on certain financial institutions to offset its operating costs. Accordingly, CBO estimates that the bill’s net effect on the deficit would be negligible.
Because enacting H.R. 3110 would affect direct spending and revenues, pay-as-you-go procedures apply.
CBO estimates that enacting H.R. 3110 would not significantly increase net direct spending or on-budget deficits in any of the four consecutive 10-year periods beginning in 2028.
H.R. 3110 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act and would not affect the budgets of state, local, or tribal governments.
