Stress Testing Accountability and Transparency Act

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5270 Introduced in House (IH)]

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119th CONGRESS
  1st Session
                                H. R. 5270

  To require the Board of Governors of the Federal Reserve System to 
 issue rules to establish certain methodologies and scenarios used in 
                stress testing, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 10, 2025

Mr. Huizenga (for himself and Mr. Barr) introduced the following bill; 
       which was referred to the Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
  To require the Board of Governors of the Federal Reserve System to 
 issue rules to establish certain methodologies and scenarios used in 
                stress testing, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Stress Testing Accountability and 
Transparency Act''.

SEC. 2. RULEMAKING RELATED TO STRESS CAPITAL BUFFER REQUIREMENTS.

    (a) In General.--Not later than 90 days after the date of the 
enactment of this section, the Board of Governors of the Federal 
Reserve System (in this Act referred to as the ``Board'') shall issue a 
rule to establish any models, assumptions, formulas, or other 
decisional methodologies that are used to determine any component or 
subcomponent of the stress capital buffer requirement for a bank 
holding company.
    (b) Changes.--The Board may only make changes to the rule issued 
under subsection (a) through notice and comment rulemaking.
    (c) No Double-Count.--The Board shall ensure no double-count of 
capital requirements for the same risks in the stress capital buffer 
requirement and the risk-based capital requirements.
    (d) Stress Capital Buffer Requirement Defined.--In this section, 
the term ``stress capital buffer requirement'' has the meaning given 
the term in section 225.8(d) of title 12 of the Code of Federal 
Regulations.

SEC. 3. RULEMAKING RELATING TO STRESS TESTING.

    (a) In General.--Beginning in the first calendar year beginning 
after the date of the enactment of this section, the Board shall, not 
less than 30 days before conducting a stress test pursuant to section 
165(i) of the Financial Stability Act of 2010, issue a rule to 
establish each scenario to be used in such stress test.
    (b) Prohibition.--The Board may not, by rule or otherwise, subject 
any nonbank financial company to a climate-related stress test using 
the authority provided in section 165(i) of the Financial Stability Act 
of 2010.

SEC. 4. GAO REPORT.

    (a) In General.--The Comptroller General of the United States 
shall, every 3 years, conduct a study and submit a report to the 
Congress with respect to the stress tests conducted by the Board under 
section 165(i) of the Financial Stability Act of 2010 in the 3 most 
recent calendar years.
    (b) Contents.--The report submitted to the Congress under 
subsection (a) shall consider the effectiveness of the stress tests in 
evaluating--
            (1) the safety and soundness of the nonbank financial 
        institutions subjected to stress tests;
            (2) the stability of the United States financial system.
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