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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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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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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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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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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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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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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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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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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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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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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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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