The Federal Reserve Transparency Act of 2025 would require the Comptroller General, through the Government Accountability Office, to conduct a full audit of the Board of Governors of the Federal Reserve System and the Federal Reserve Banks within 12 months of enactment. The bill directs that, within 90 days after the audit is completed, the Comptroller General must submit a report to Congress and make it available to congressional leadership and relevant committee and subcommittee chairs and ranking members. The report must include detailed findings, conclusions, and any recommendations for legislative or administrative action.
The bill also changes existing law to remove limitations in current audit provisions and makes conforming amendments to federal statutes governing Federal Reserve transparency. In particular, it amends 31 U.S.C. 714 and related Federal Reserve Act provisions to eliminate certain restrictions on auditing Federal Reserve activities, including references tied to emergency lending facilities and special purpose vehicles established under section 13(3) of the Federal Reserve Act. As drafted, the measure would expand congressional oversight of the central bank and its regional reserve banks by broadening the scope of audit authority.
Impact
If enacted, the bill would significantly alter the legal framework governing audits of the Federal Reserve by overriding existing statutory limits and requiring a comprehensive GAO audit of the Board of Governors and the Federal Reserve Banks. It would also revise related transparency provisions in the Federal Reserve Act and title 31 of the U.S. Code, affecting how certain emergency programs, facilities, and related entities are treated for audit purposes. The practical effect would be greater disclosure and oversight of Federal Reserve operations, especially those involving lending facilities and other actions taken under section 13(3).
Sentiment
The bill’s overall tone is strongly supportive of transparency and oversight, as reflected in its bipartisan-sounding sponsor list and its framing as an audit and accountability measure. The available context does not include recorded votes or committee debate, so there is no documented opposition or support in the provided materials beyond the bill’s introduction and referral status. Based on the text alone, the measure appears designed to appeal to lawmakers who favor increased scrutiny of the Federal Reserve.
Contention
The main point of contention is likely to be the scope of the audit and whether Congress should expand GAO access into Federal Reserve activities that are currently limited by law, particularly emergency lending and facilities created under section 13(3). Supporters would view the bill as a needed transparency and accountability measure, while critics may argue that it risks politicizing monetary policy, undermining central bank independence, or exposing sensitive market operations. The bill’s repeal of existing audit limitations suggests that the most disputed issue is how far congressional oversight should extend into Federal Reserve decision-making and operations.
Federal Reserve Transparency Act of 2023 This bill establishes requirements regarding audits of certain financial agencies performed by the Government Accountability Office (GAO). Specifically, the bill directs the GAO to complete, within 12 months, an audit of the Federal Reserve Board and Federal Reserve banks. In addition, the bill allows the GAO to audit the Federal Reserve Board and Federal Reserve banks with respect to (1) international financial transactions; (2) deliberations, decisions, or actions on monetary policy matters; (3) transactions made under the direction of the Federal Open Market Committee; and (4) discussions or communications among Federal Reserve officers, board members, and employees regarding any of these matters.