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To Provide Direct Stimulus Payments for Families During the COVID–19 Pandemic — 116th Congress, 2d Session

Summary

This discussion draft of a bill in the 116TH CONGRESS, introduced by Waters, would provide direct stimulus payments for families during the COVID–19 pandemic, and for other purposes. The Secretary of the Treasury, acting through the Commissioner of the Internal Revenue Service, would make monthly emergency payments to qualified individuals: $2,000 for a qualified individual age 18 or older and $1,000 for one under age 18, reduced by 5 percent of adjusted gross income above $75,000, $150,000 on a joint return, and $112,500 for a head of household. Member banks would be directed to establish and maintain FedAccounts for persons eligible to receive payments who elect to deposit them into a FedAccount.

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“To Provide Direct Stimulus Payments for Families During the COVID–19 Pandemic — 116th Congress, 2d Session.” Original at docs.house.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/bills-116pih-fspfaa-3661961edb70/, SHA-256 3661961edb702d7f7067280452be0bdf55788d6a8adb302f836427c006c8b77c.

Full text

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                                                            [DISCUSSION DRAFT]

                                                                       H. R. ll
                               116TH CONGRESS
                                  2D SESSION


                                     To provide direct stimulus payments for families during the COVID–19
                                                        pandemic, and for other purposes.




                                             IN THE HOUSE OF REPRESENTATIVES

                                       Ms. WATERS introduced the following bill; which was referred to the
                                               Committee on llllllllllllll




                                                                         A BILL
                                 To provide direct stimulus payments for families during the
                                       COVID–19 pandemic, and for other purposes.

                                 1               Be it enacted by the Senate and House of Representa-
                                 2 tives of the United States of America in Congress assembled,
                                 3     SECTION 1. SHORT TITLE.

                                 4               This Act may be cited as the ‘‘Faster Stimulus Pay-
                                 5 ments and FedAccounts Act’’.
                                 6     SEC. 2. DIRECT STIMULUS PAYMENTS FOR FAMILIES.

                                 7               (a) DEFINITIONS.—In this section:
                                 8                        (1) FEDACCOUNT.—The term ‘‘FedAccount’’
                                 9               means a pass-through no fee central bank account

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                                                                                          2
                                 1               supported by a Federal reserve bank for any person
                                 2               eligible for a emergency payment under subsection
                                 3               (b) maintained at a bank, thrift, credit union, or any
                                 4               Federal reserve bank.
                                 5                        (2) MEMBER BANK.—The term ‘‘member bank’’
                                 6               means a member bank of the Board of Governors of
                                 7               the Federal Reserve System.
                                 8                        (3) QUALIFIED                       INDIVIDUAL          DEFINED.—The

                                 9               term ‘‘qualified individual’’ means—
                               10                                  (A) an eligible individual, as such term is
                               11                         defined under section 6428(d) of the Internal
                               12                         Revenue Code of 1986; and
                               13                                  (B) any individual not described under
                               14                         subparagraph (A) who has been assigned a so-
                               15                         cial security number or an Individual Taxpayer
                               16                         Identification Number (ITIN).
                               17                (b) EMERGENCY STIMULUS CHECK IMPLEMENTA-
                               18      TION.—

                               19                         (1) PAYMENTS.—The Secretary of the Treas-
                               20                ury, acting through the Commissioner of the Inter-
                               21                nal Revenue Service, shall make monthly emergency
                               22                payments to qualified individuals beginning on the
                               23                first day of the first month beginning after the date
                               24                of the enactment of this Act and ending on the later
                               25                of—


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                                                                                          3
                                 1                                 (A) the date of the termination by the
                                 2                        Federal Emergency Management Agency of the
                                 3                        emergency declared on March 13, 2020, by the
                                 4                        President under section 501(b) of the Robert T.
                                 5                        Stafford Disaster Relief and Emergency Assist-
                                 6                        ance Act with respect to the COVID–19 pan-
                                 7                        demic; and
                                 8                                 (B) the date on which—
                                 9                                         (i) the national unemployment rate
                               10                                  (as determined by the Bureau of Labor
                               11                                  Statistics) is within 2 percentage points of
                               12                                  the national unemployment rate on Feb-
                               13                                  ruary 1, 2020; and
                               14                                          (ii) the 3-month average of the na-
                               15                                  tional unemployment rate has declined for
                               16                                  two consecutive months.
                               17                         (2) AMOUNT OF PAYMENTS.—
                               18                                  (A) IN GENERAL.—With respect to a quali-
                               19                         fied individual, the amount of each monthly
                               20                         payment under paragraph (1) shall be as fol-
                               21                         lows:
                               22                                          (i) For a qualified individual age 18
                               23                                  or older, $2,000.
                               24                                          (ii) For a qualified individual under
                               25                                  age 18, $1,000.


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                                                                                          4
                                 1                                 (B) INCOME LIMITATION.—The amount of
                                 2                        a payment under subparagraph (A) shall be re-
                                 3                        duced (but not below zero) by 5 percent of so
                                 4                        much of the individual’s adjusted gross income
                                 5                        as exceeds $75,000, $150,000 in the case of a
                                 6                        joint return, and $112,500 in the case of a
                                 7                        head of household.
                                 8                        (3) METHOD OF DELIVERY.—
                                 9                                 (A) IN GENERAL.—The Secretary of the
                               10                         Treasury, acting through the Commissioner of
                               11                         the Internal Revenue Service, shall make the
                               12                         payments required under paragraph (1)—
                               13                                          (i) first, by direct deposit (including
                               14                                  FedAccounts), if the Commissioner has
                               15                                  sufficient information to make direct de-
                               16                                  posit payments to the applicable individual;
                               17                                  and
                               18                                          (ii) otherwise, by check or prepaid
                               19                                  debit card issued by a person with suffi-
                               20                                  cient information to issue such card.
                               21                                  (B) OUTREACH.—The Secretary of the
                               22                         Treasury, acting through the Commissioner of
                               23                         the Internal Revenue Service, shall establish a
                               24                         system for a qualified individual to provide the
                               25                         Internal Revenue Service with the individual’s


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                                                                                          5
                                 1                        direct deposit information and shall perform
                                 2                        outreach to inform the public of such system.
                                 3                        (4) ACCESSING PAYMENTS.—If a payment is
                                 4               deposited (by any method) into an account of a
                                 5               qualified individual at an insured depository institu-
                                 6               tion (as defined in section 3 of the Federal Deposit
                                 7               Insurance Act) or insured credit union (as defined in
                                 8               section 101 of the Federal Credit Union Act), such
                                 9               funds shall be available for withdrawal on the same
                               10                day, to the fullest extent possible.
                               11                         (5) FUNDING.—The Secretary of the Treasury
                               12                shall, before each monthly payment required under
                               13                subsection (a), notify the Board of Governors of the
                               14                Federal Reserve System of the aggregate amount of
                               15                such payment, and the Board of Governors shall
                               16                issue notes in such amount and transfer such notes
                               17                to the Secretary of the Treasury for use in making
                               18                such payments.
                               19                (c) MANDATE FOR MEMBER BANKS TO MAINTAIN
                               20 FEDACCOUNTS.—
                               21                         (1) OBLIGATIONS OF MEMBER BANKS.—
                               22                                  (A) IN           GENERAL.—Member                      banks are
                               23                         hereby directed to establish and maintain
                               24                         FedAccounts for all persons eligible to receive
                               25                         payments from the United States pursuant to


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                                                                                          6
                                 1                        this section who elect to deposit such payments
                                 2                        into a FedAccount.
                                 3                                 (B) SEPARATE ENTITY.—
                                 4                                         (i) IN GENERAL.—Each member bank
                                 5                                 shall establish and maintain a separate
                                 6                                 legal entity for the exclusive purpose of
                                 7                                 holding all assets and maintaining all li-
                                 8                                 abilities associated with FedAccounts.
                                 9                                         (ii) ASSETS.—The assets of any entity
                               10                                  described in this paragraph shall consist
                               11                                  exclusively of a balance maintained in a
                               12                                  master account at a Federal reserve bank,
                               13                                  and the liabilities or obligations of the enti-
                               14                                  ty shall consist exclusively of an equal
                               15                                  quantity of balances maintained by holders
                               16                                  of FedAccounts.
                               17                                          (iii) SEPARATE ASSETS AND LIABIL-
                               18                                  ITIES.—The                 assets and liabilities of any
                               19                                  legal entity described in this paragraph
                               20                                  shall not be deemed assets or liabilities of
                               21                                  the member bank or its affiliates for pur-
                               22                                  poses of any capital or liquidity regulation
                               23                                  promulgated by Federal or State banking
                               24                                  authorities.




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                                                                                          7
                                 1                                 (C) APPLICATION.—Member banks with
                                 2                        total        consolidated                   assets      in     excess       of
                                 3                        $10,000,000,000 shall promptly offer individ-
                                 4                        uals the ability to apply, through online or tele-
                                 5                        phonic means, for a FedAccount.
                                 6                        (2) TERMS.—Member banks shall ensure that a
                                 7               FedAccount established under this section—
                                 8                                 (A) may not be subject to any account
                                 9                        fees, minimum balances, or maximum balances;
                               10                                  (B) shall pay interest at a rate not below
                               11                         the greater of—
                               12                                          (i) the rate of interest on required re-
                               13                                  serves; and
                               14                                          (ii) the rate of interest on excess re-
                               15                                  serves;
                               16                                  (C) shall provide functionality and service
                               17                         levels not less favorable than those that the
                               18                         member bank offers for its existing transaction
                               19                         accounts (including with respect to access to
                               20                         debit cards and automated teller machines, on-
                               21                         line account access, automatic bill-pay and mo-
                               22                         bile banking services, customer service, and
                               23                         such other services as the Board determines),
                               24                         except that FedAccounts shall not include over-
                               25                         draft coverage;


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                                                                                          8
                                 1                                 (D) shall be prominently branded in all ac-
                                 2                        count statements, marketing materials, and
                                 3                        other communications of the member bank as a
                                 4                        ‘‘pass-through FedAccount’’ maintained by the
                                 5                        member bank on behalf of the Board of Gov-
                                 6                        ernors of the Federal Reserve System;
                                 7                                 (E) may not be closed or restricted by the
                                 8                        member bank on the basis of profitability con-
                                 9                        siderations; and
                               10                                  (F) shall provide holders with reasonable
                               11                         protection against losses caused by fraud or se-
                               12                         curity breaches.
                               13                         (3) REIMBURSEMENT FOR COSTS.—
                               14                                  (A) IN          GENERAL.—Each                    member bank
                               15                         with total consolidated assets not greater than
                               16                         $10,000,000,000 shall be reimbursed each cal-
                               17                         endar quarter by the relevant Federal reserve
                               18                         bank for actual and reasonable operational
                               19                         costs incurred by the member bank in offering
                               20                         FedAccounts.
                               21                                  (B) RULEMAKING.—The Board of Gov-
                               22                         ernors of the Federal Reserve System shall
                               23                         issue rules to carry out subparagraph (A).
                               24                         (4) AUTHORITY                       OF      THE      BOARD.—Member

                               25                banks shall be subject to such rules as may be im-


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                                                                                          9
                                 1               posed by the Board of Governors of the Federal Re-
                                 2               serve        System            in        connection          with      maintaining
                                 3               FedAccounts.
                                 4               (d) AUTHORITY FOR STATE NONMEMBER BANKS,
                                 5 THRIFTS,                        AND         CREDIT                 UNIONS          TO       OFFER
                                 6 FEDACCOUNTS.—The Federal reserve banks shall permit
                                 7 State banks, Federal thrifts, State thrifts, and credit
                                 8 unions that are not member banks to open master ac-
                                 9 counts for the exclusive purpose of offering FedAccounts
                               10 in compliance with the requirements of subsection (c).
                               11 Each State bank, Federal thrift, State thrift, or credit
                               12 union electing to offer FedAccounts shall be entitled to
                               13 cost reimbursement in accordance with subsection (c)(3).
                               14                (e) MANDATE FOR FEDERAL RESERVE BANKS TO
                               15 MAINTAIN FEDACCOUNTS.—
                               16                         (1) AUTHORIZATION.—Subject to such restric-
                               17                tions, limitations, and regulations as may be im-
                               18                posed by the Board of Governors of the Federal Re-
                               19                serve System, each Federal reserve bank shall main-
                               20                tain FedAccounts.
                               21                         (2) MANDATE.—
                               22                                  (A) IN GENERAL.—Not later than January
                               23                         1, 2021, all Federal reserve banks shall make
                               24                         FedAccounts available to all persons eligible to




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                                                                                      10
                                 1                        receive payments from the United States pursu-
                                 2                        ant to this section.
                                 3                                 (B) EXCEPTION.—In geographic areas
                                 4                        where physical access to a branch of a Federal
                                 5                        reserve bank is limited, Federal reserve banks
                                 6                        serving such areas shall partner with United
                                 7                        States Postal Service branch offices to ensure
                                 8                        access and availability to application and ac-
                                 9                        count services for FedAccounts.
                               10                         (3) TERMS OF FEDACCOUNTS.—Federal reserve
                               11                banks shall ensure that FedAccounts established
                               12                under this section—
                               13                                  (A) may not be subject to any account
                               14                         fees, minimum balances, or maximum balances;
                               15                                  (B) shall pay interest at a rate not below
                               16                         the greater of—
                               17                                          (i) the rate of interest on required re-
                               18                                  serves; and
                               19                                          (ii) the rate of interest on excess re-
                               20                                  serves;
                               21                                  (C) shall provide access to debit cards, on-
                               22                         line account access, automatic bill-pay and mo-
                               23                         bile banking services, customer service, and
                               24                         such other services as the Board determines,




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                                                                                      11
                                 1                        except that FedAccounts shall not include over-
                                 2                        draft coverage.
                                 3                                 (D) shall provide, in conjunction with the
                                 4                        United States Postal Service, access to auto-
                                 5                        mated teller machines to be maintained on be-
                                 6                        half of the Board by the United States Postal
                                 7                        Service at branch offices;
                                 8                                 (E) shall be prominently branded in all ac-
                                 9                        count statements, marketing materials, and
                               10                         other communications of the Federal reserve
                               11                         bank as a ‘‘FedAccount’’ maintained by the
                               12                         member bank on behalf of the United States of
                               13                         America;
                               14                                  (F) may not be closed or restricted on the
                               15                         basis of profitability considerations; and
                               16                                  (G) shall provide holders with reasonable
                               17                         protection against losses caused by fraud or se-
                               18                         curity breaches.
                               19                         (4) BANK SECRECY ACT.—In establishing and
                               20                maintaining FedAccounts, each Federal reserve
                               21                bank shall comply with section 21 of the Federal
                               22                Deposit Insurance Act (12 U.S.C. 1829b), section
                               23                123 of Public Law 91–508, subchapter II of chapter
                               24                53 of title 31, United States Code.




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                                                                                      12
                                 1                        (5) PENALTIES.—The Board of Governors of
                                 2               the Federal Reserve System shall, by rule, establish
                                 3               penalties applicable to Federal reserve banks and
                                 4               employees of such banks for violations of privacy ob-
                                 5               ligations relating to FedAccounts that are similar to
                                 6               the penalties imposed by the Commissioner of the
                                 7               Internal Revenue Service with respect to violations
                                 8               of privacy obligations relating to Federal tax re-
                                 9               turns.
                               10                (f) REGULATIONS.—The Board of Governors of the
                               11 Federal Reserve System shall promulgate regulations to
                               12 carry out this section.




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