Findings and purposes

(a)

Findings

Congress finds the following:(1)Families in the United States spend billions of dollars in overdraft fees in part because they are waiting for checks to clear over a weekend or holiday.(2)The inefficient payment system in the United States drives families, especially those living paycheck to paycheck, to use high-cost financial services to access funds more rapidly.(3)A faster payment system would provide people of the United States immediate access to funds and relief for those who overdraw their accounts because their deposits are not available in real-time, helping families potentially save billions of dollars each year.(4)The Board of Governors of the Federal Reserve System has created FedNow, an instant payment infrastructure that allows participants to send and receive funds in real time.(5)Financial services providers have a duty to make payments available as soon as it is reasonably possible.(b)

Purposes

The purposes of this Act are—(1)to ensure that the United States has a safe, fast, efficient, equitable, and fair payment system; and(2)to clarify that financial institutions shall prioritize efficient payments, except in cases in which fraudulent activity is suspected.

Requirement that funds deposited be available for withdrawal in real-time

(a)

Definitions

(1)

In general

Section 602 of the Expedited Funds Availability Act (12 U.S.C. 4001) is amended—(A)by redesignating paragraphs (20) through (25) as paragraphs (21) through (26), respectively; and(B)by inserting after paragraph (19) the following:

(20)

Real-time

The term real-time—(A)means any time; and(B)includes a Saturday, Sunday, and a legal holiday.

(2)

Technical and conforming amendment

Section 3 of the Check Clearing for the 21st Century Act (12 U.S.C. 5002(2)(D)(iv)) is amended by striking section 602(24) and inserting section 602(25).(b)

Expedited funds availability schedules

Section 603 of the Expedited Funds Availability Act (12 U.S.C. 4002) is amended—(1)in subsection (a)—(A)in the subsection heading, by striking

Next Business Day

and inserting

Real-time

;(B)in paragraph (1)—(i)in the matter preceding subparagraph (A), by striking Except as provided in subsection (e) and in section 604, in and inserting In; and(ii)in the matter following subparagraph (B) by striking not later than the business day after the business day on which and inserting in real-time when; and(C)in paragraph (2), in the matter preceding subparagraph (A), by striking not later than the business day after the business day on which and inserting in real-time after;(2)by striking subsection (b) and inserting the following:

(b)

Permanent Schedule

Funds deposited in an account at a depository institution by a check drawn on a local or nonlocal originating depository institution shall be available for withdrawal in real-time.

;

(3)by striking subsections (c) and (d);(4)by redesignating subsections (e) and (f) as subsections (c) and (d), respectively;(5)in subsection (c), as redesignated by paragraph (4)—(A)in paragraph (1)—(i)in subparagraph (A)—(I)by striking Not more than 4 business days shall intervene between the business day a and inserting A;(II)by inserting a comma after subparagraph (B);(III)by striking is; and(IV)by striking and the business day on which funds from such deposit are available for withdrawal and inserting shall be available for withdrawal in real-time; and(ii)in subparagraph (B), in the subparagraph heading, by striking

paragraph

and inserting

subparagraph

; and(B)in paragraph (2)—(i)by striking , (b), and (c) and inserting and (b); and(ii)in the paragraph heading, by striking

temporary and permanent schedules

and inserting

permanent schedule

; and(6)in subsection (d)(2), as redesignated by paragraph (4), by striking (c), or (e) and inserting or (c).(c)

Safeguard exceptions

Section 604 of the Expedited Funds Availability Act (12 U.S.C. 4003) is amended—(1)in subsection (a)—(A)in paragraph (1)—(i)in the paragraph heading by striking

Next business day

and inserting

Real-time

; and(ii)in the matter following subparagraph (D) by striking on the business day after the business day on which such cash or funds are deposited or, in the case of a wire transfer, on the business day after the business day on which and inserting in real-time after such cash or funds are deposited or, in the case of a wire transfer, in real-time after;(B)in paragraph (2)—(i)by striking , 603(c), or paragraphs and inserting paragraph; and(ii)by striking 603(e) and inserting 603(c); and(C)by striking paragraph (3)(B) and inserting the following:

(B)any such funds deposited in excess of such amount shall be available for withdrawal in real-time.

;

(2)in subsection (b), in the matter preceding paragraph (1), by striking (c), or (e) and inserting or (c);(3)in subsection (c)(1), by striking (c), and (e) and inserting and (c); and(4)in subsection (d), in the matter preceding paragraph (1), by striking (c), and (e) and inserting and (c).(d)

Miscellaneous provisions

Section 607 of the Expedited Funds Availability Act (12 U.S.C. 4006) is amended—(1)by striking subsections (a) and (b); and(2)by redesignating subsections (c) through (f) as subsections (a) through (d), respectively.(e)

Regulations and reports by Board

Section 609 of the Expedited Funds Availability Act (12 U.S.C. 4008) is amended—(1)in subsection (b)(8), by striking , pursuant to the study under subsection (f);(2)by striking subsections (d) and (f); and(3)by redesignating subsection (e) as subsection (d).(f)

GAO study

Not later than 90 days after the date of enactment of this Act, the Comptroller General of the United States shall publish a study on the impact of payment delays on disadvantaged communities, including underbanked communities, and future access to and use of financial services by those communities.(g)

Federal Reserve report

Not later than 90 days after the date of enactment of this Act, the Board of Governors of the Federal Reserve System shall submit to Congress a report on the progress of the FedNow instant payment infrastructure, including—(1)any obstacles encountered with respect to institutions opting to utilize FedNow or participants using FedNow; and (2)any challenges anticipated with respect to expanding the utilization of FedNow.