Congresswoman Monica De La Cruz’s bill, the Bringing the Discount Window into the 21st Century Act, has passed the House Financial Services Committee. The legislation seeks to direct the Federal Reserve to review and improve its discount window operations, which are used to provide liquidity to financial institutions such as community banks during periods of financial stress.
“By improving efficiencies in the U.S. banking system, we are ensuring homeowners, small businesses, and farmers can access capital. Committee passage is just the first step toward implementing these improvements. Next stop:the House floor!” said Congresswoman Monica De La Cruz.
The bill is co-sponsored by Frank Lucas, Chairman of the Financial Services Committee Task Force on Monetary Policy, and Dan Meuser, Chairman of Oversight and Investigations Subcommittee. Several organizations have expressed support for the legislation, including the American Bankers Association, Bank Policy Institute, Independent Community Bankers of America, and Defense Credit Union Council.
“We support Representative De La Cruz’s efforts to restore the Fed’s discount window as a credible source of bank liquidity in times of stress. Operational inefficiencies and persistent stigma render the discount window underutilized, and this legislation will help address these barriers and further strengthen financial stability,” said Greg Baer, President and CEO of Bank Policy Institute.
If enacted, this bill would require the Federal Reserve to conduct a review of its discount window operations and implement process improvements. The discount window allows lending to depository institutions like banks and credit unions to help maintain stability during financial challenges.
Monica De La Cruz is currently serving in Congress representing Texas’ 15th district after replacing Vicente Gonzalez in 2023. She previously won elections against Michelle Vallejo in both 2022 and 2024.
