[Congressional Record Volume 172, Number 106 (Wednesday, June 24, 2026)]
[House]
[Pages H4222-H4226]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




             FINANCIAL EXPLOITATION PREVENTION ACT OF 2025

  Mr. HILL of Arkansas. Mr. Speaker, I move to suspend the rules and 
pass the bill (H.R. 2478) to amend the Investment Company Act of 1940 
to postpone the date of payment or satisfaction upon redemption of 
certain securities in the case of the financial exploitation of 
specified adults, and for other purposes, as amended.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 2478

       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 ``Financial Exploitation 
     Prevention Act of 2025''.

     SEC. 2. REDEMPTION OF CERTAIN SECURITIES POSTPONED.

       (a) In General.--Section 22 of the Investment Company Act 
     of 1940 (15 U.S.C. 80a-22) is amended by adding at the end 
     the following:
       ``(h) Requirements With Respect to Non-institutional Direct 
     At-fund Accounts.--
       ``(1) Election.--
       ``(A) In general.--A registered open-end investment company 
     and a transfer agent described under paragraph (2) may elect 
     to comply with the requirements under paragraph (2) and 
     subsection (i) by notifying the Commission of such election.
       ``(B) Effect of election.--Paragraph (2) and subsection (i) 
     shall only apply to a registered open-end investment company 
     and a transfer agent that have made the election under 
     subparagraph (A).
       ``(2) Requirements.--In the case of a customer who is a 
     holder of a non-institutional account held directly with a 
     registered open-end investment company and serviced by a 
     transfer agent (a `direct-at-fund account'), the company and 
     transfer agent shall--
       ``(A) request from such customer the name and contact 
     information of at least one individual who--
       ``(i) is at the time of such request an adult; and
       ``(ii) may be contacted with respect to such account;
       ``(B) document and retain the information received pursuant 
     to subparagraph (A); and
       ``(C) disclose to such customer in writing (including 
     through electronic delivery) that such company or transfer 
     agent may contact an individual specified pursuant to 
     subparagraph (A) with respect to the account of such customer 
     to--
       ``(i) address possible financial exploitation of such 
     customer;
       ``(ii) confirm the contact information or health status of 
     the customer; or
       ``(iii) identify any legal guardian, executor, trustee, or 
     holder of a power of attorney of the customer.
       ``(i) Redemption of Certain Securities Postponed.--
       ``(1) In general.--Notwithstanding subsection (e), a 
     registered open-end investment company or a transfer agent 
     acting on behalf of such company may postpone the date of 
     payment or satisfaction upon redemption of any redeemable 
     security in accordance with its terms for more than seven 
     days after the tender of such security to such company or its 
     agent designated for that purpose for redemption if such 
     company or agent reasonably believes that--
       ``(A) the redemption is requested by a security holder who 
     is a specified adult; and
       ``(B) financial exploitation has occurred, is occurring, or 
     has been attempted with respect to such redemption.
       ``(2) Duration.--
       ``(A) In general.--Except as provided in subparagraphs (B) 
     and (C), a registered open-end investment company or a 
     transfer agent acting on behalf of such company may postpone 
     the date of payment or satisfaction upon redemption of a 
     redeemable security under paragraph (1) for a period of not 
     more than 15 business days.
       ``(B) Extension upon determination of exploitation.--The 
     period described in subparagraph (A) may be extended by an 
     additional 10 business days if the registered open-end 
     investment company or a transfer agent acting on behalf of 
     such company--
       ``(i) reasonably believes that--

       ``(I) the redemption is requested by a security holder who 
     is a specified adult; and
       ``(II) financial exploitation has occurred, is occurring, 
     or has been attempted with respect to such redemption;

       ``(ii) subject to subparagraph (D), not later than 2 days 
     after making a determination under clause (i), notifies the 
     individuals specified by such security holder under 
     subsection (h)(2)(A) in writing (including through electronic 
     delivery) of the extension of the period described in 
     subparagraph (A) under this subparagraph and the reason for 
     such extension;
       ``(iii) initiates an internal review of the facts and 
     circumstances relating to the determination under clause (i);
       ``(iv) holds amounts related to the delayed payment or 
     satisfaction upon redemption of the redeemable security in a 
     demand deposit account; and
       ``(v) documents and retains records related to carrying out 
     clause (iv) and includes such records in the first required 
     account statement of the security holder provided after the 
     date on which the determination is made under clause (i).
       ``(C) Extension by government.--A State regulator, 
     administrative agency of competent jurisdiction, or court of 
     competent jurisdiction may extend the period described in 
     subparagraph (A).
       ``(D) Notification.--
       ``(i) Exception.--Subparagraph (B)(ii) shall not apply if a 
     registered open-end investment company or transfer agent 
     acting on behalf of such company reasonably believes that an 
     individual required to be notified under such subparagraph 
     is, has been, or will subject the security holder who 
     identified such individual under subsection (h)(2)(A) to 
     financial exploitation.
       ``(ii) Reasonable efforts.--An open-end investment company 
     or transfer agent acting on behalf of such company shall be 
     considered in compliance with subparagraph (B)(ii) if such 
     company or transfer agent makes a reasonable effort to 
     contact the individuals specified by a security holder under 
     subsection (h)(2)(A).
       ``(E) Internal procedures.--An open-end investment company 
     or transfer agent acting on behalf of such company shall 
     establish procedures to carry out the requirements under this 
     subsection, including procedures--
       ``(i) related to the identification and reporting of 
     matters related to the financial exploitation of specified 
     adults;
       ``(ii) to determine whether to release or reinvest delayed 
     redemption proceeds, taking into account the facts and 
     circumstances of each case, should the internal review under 
     subparagraph (B)(iii) support the reasonable belief described 
     in subparagraph (B)(i);
       ``(iii) identifying each employee of the company or 
     transfer agent with authority to establish, extend, or 
     terminate a period described in paragraph (1) or subparagraph 
     (A);
       ``(iv) in the case of a transfer agent, that are reasonably 
     designed to ensure that the employees of such transfer agent 
     comply with this subsection; and
       ``(v) in the case of an open-end investment company, 
     establishing periodic reporting requirements under which a 
     transfer agent acting on behalf of such company shall notify 
     such company of--

       ``(I) each extension under subparagraph (B) authorized by 
     such transfer agent;
       ``(II) each finding by the transfer agent under 
     subparagraph (B)(i);
       ``(III) each notification under subparagraph (B)(ii) 
     carried out by such transfer agent; and
       ``(IV) the results of each internal review initiated by the 
     transfer agent under subparagraph (B)(iii).

       ``(F) Information included in certain statements.--An open-
     end investment company shall include in each prospectus or 
     statement of additional information a notification that the 
     company or transfer agent acting on behalf of such company 
     may postpone redemption of certain securities under this 
     subsection.
       ``(G) Record retention.--An open-end investment company or 
     transfer agent acting on behalf of such company shall--
       ``(i) document and retain records of--

       ``(I) each postponement of redemption under subparagraph 
     (A), (B), or (C);
       ``(II) each finding under subparagraph (B)(i);
       ``(III) the name and position of each employee described in 
     subparagraph (E)(iii);
       ``(IV) each notification carried out under subparagraph 
     (B)(ii); and
       ``(V) the results of each internal review initiated under 
     subparagraph (B)(iii); and

       ``(ii) make such records available to the Commission at the 
     request of the Commission.
       ``(3) Specified adult defined.--In this subsection, the 
     term `specified adult' means--
       ``(A) an individual age 65 or older; or
       ``(B) an individual age 18 or older who a registered open-
     end investment company or a transfer agent acting on behalf 
     of such company reasonably believes has a mental or physical 
     impairment that renders the individual unable to protect the 
     individual's own interests.''.
       (b) Regulatory and Legislative Recommendations.--
       (1) In general.--Not later than 1 year after the date of 
     the enactment of this section, the Securities and Exchange 
     Commission, in consultation with the entities specified in 
     paragraph (2),

[[Page H4223]]

     shall submit to Congress a report that includes 
     recommendations regarding the regulatory and legislative 
     changes necessary to address the financial exploitation of 
     security holders who are specified adults (as defined in 
     subsection (i)(3) of section 22 of the Investment Company Act 
     of 1940 (15 U.S.C. 80a-22), as added by this section).
       (2) Consultation.--The entities specified in this paragraph 
     are as follows:
       (A) The Commodity Futures Trading Commission.
       (B) The Director of the Bureau of Consumer Financial 
     Protection.
       (C) The Financial Industry Regulatory Authority.
       (D) The North American Securities Administrators 
     Association.
       (E) The Board of Governors of the Federal Reserve System.
       (F) The Comptroller of the Currency.
       (G) The Federal Deposit Insurance Corporation.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Arkansas (Mr. Hill) and the gentlewoman from California (Ms. Waters) 
each will control 20 minutes.
  The Chair recognizes the gentleman from Arkansas.


                             General Leave

  Mr. HILL of Arkansas. Mr. Speaker, I ask unanimous consent that all 
Members may have 5 legislative days to extend their remarks and include 
extraneous material on this bill.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Arkansas?
  There was no objection.
  Mr. HILL of Arkansas. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, I include in the Record the Congressional Budget Office 
estimate for this bill.

H.R. 2478, FINANCIAL EXPLOITATION PREVENTION ACT OF 2025, AS REPORTED BY
      THE HOUSE COMMITTEE ON FINANCIAL SERVICES ON NOVEMBER 4, 2025
------------------------------------------------------------------------
                                         By Fiscal Year,  Millions of
                                                   Dollars--
                                     -----------------------------------
                                         2026      2026-2031   2026-2036
------------------------------------------------------------------------
Direct Spending (Outlays)...........          *           *           *
Revenues............................          *           *           *
Increase or Decrease (-) in the               *           *           *
 Deficit............................
Spending Subject to Appropriation             *           *         not
 (Outlays)..........................                          estimated
------------------------------------------------------------------------
* = between -$500,000 and $500,000.

       Increases net direct spending in any of the four 
     consecutive 10-year periods beginning in 2037? No.
       Increases on-budget deficits in any of the four consecutive 
     10-year periods beginning in 2037? No.
       Statutory pay-as-you-go procedures apply? Yes.
       Mandate Effects:
       Contains intergovernmental mandate? No.
       Contains private-sector mandate? Yes, under threshold.
       The bill would:
       Allow certain investment companies and their agents to 
     postpone payments for the redemption of securities for up to 
     15 business days when they suspect the request of such action 
     is the result of the exploitation of one or more people age 
     65 or older or who have impairments that keep them from 
     protecting their own interests.
       Require the Securities and Exchange Commission (SEC) to 
     report to the Congress within one year on regulatory and 
     legislative policies that could mitigate the financial 
     exploitation of such people.
       Direct five federal agencies to consult with the SEC in 
     preparing that report.
       Impose mandates on financial institutions if federal 
     financial regulators increase fees to implement the bill.
       Estimated budgetary effects would mainly stem from:
       Staffing costs for the SEC to study and report on policies 
     that could mitigate financial exploitation of vulnerable 
     adults.
       Administrative costs for financial regulators to consult 
     with the SEC.


                              Bill Summary

       H.R. 2478 would allow certain investment companies and 
     their agents to postpone payments for the redemption of 
     securities for up to 15 business days when they suspect the 
     request of such action is the result of the exploitation of 
     one or more people who are age 65 or older or who have 
     impairments that keep them from protecting their own 
     interests.
       H.R. 2478 also would require the Securities and Exchange 
     Commission (SEC) to report to the Congress within one year on 
     regulatory and legislative policies that could mitigate the 
     financial exploitation of such people. The bill would direct 
     the Commodity Futures Trading Commission (CFTC), Consumer 
     Financial Protection Bureau (CFPB), Federal Deposit Insurance 
     Corporation (FDIC), Office of the Comptroller of the Currency 
     (OCC), and Federal Reserve to consult with the SEC on the 
     report.


                         Estimated Federal Cost

       The costs of the legislation fall within budget function 
     370 (commerce and housing credit).


                           Basis of Estimate

       CBO assumes that the bill will be enacted in fiscal year 
     2026. The costs for the federal agencies other than the SEC 
     would be minimal. Using information from the agencies, CBO 
     expects that each one would need less than one full-time-
     equivalent employee to assist the SEC with its report.


                      Direct Spending and Revenues

       CBO estimates that enacting H.R. 2478 would decrease 
     revenues and increase direct spending, on net, by less than 
     $500,000 over the 2026-2036 period; the net effect on the 
     deficit would be insignificant.
       The operating costs for the FDIC and OCC are classified in 
     the budget as direct spending. Because the OCC is authorized 
     to collect fees from regulated institutions to cover 
     administrative expenses, CBO estimates that enacting H.R. 
     2478 would increase net direct spending by an insignificant 
     amount over the 2026-2036 period.
       Under current law, the CFPB is permanently authorized to 
     spend amounts transferred from the combined earnings of the 
     Federal Reserve in an amount necessary to carry out its 
     responsibilities, subject to a statutory cap that was most 
     recently lowered by the 2025 reconciliation act. That 
     spending is classified as direct spending in the budget. 
     Because CBO expects that, under current law, the CFPB will 
     spend all transferred funds up to its statutory cap in the 
     years that the combined earnings of the Federal Reserve are 
     sufficient to fund the CFPB, we do not attribute any increase 
     in direct spending for the CFPB to this bill. Any spending by 
     the CFPB to implement the bill would necessitate a decrease 
     in spending for other activities of the agency.
       Costs incurred by the Federal Reserve reduce remittances to 
     the Treasury, which are recorded in the budget as revenues. 
     CBO estimates that enacting H.R. 2478 would decrease revenues 
     by an insignificant amount over the 2026-2036 period.


                   Spending Subject to Appropriation

       In June 2018, the SEC announced that it would not pursue 
     enforcement actions against investment companies or their 
     agents that delay the disbursement of redeemed securities 
     based on the belief that the request was the result of the 
     financial exploitation of a person who is age 65 or older or 
     is an impaired adult.
       On that basis and using information from the commission 
     about the cost of similar reports, CBO estimates that 
     implementing H.R. 2478 would cost the SEC $2 million over the 
     2026-2031 period. CBO expects that the SEC would need five 
     employees, at an average cost of $340,000 per employee, for 
     one year to complete the study and report to the Congress. 
     Because the SEC is authorized to collect fees each year to 
     offset its annual appropriation, CBO expects that the net 
     effect on the commission's discretionary spending over the 
     2026-2031 period would be negligible, assuming appropriation 
     actions consistent with that authority.
       CBO estimates that implementing the bill would increase 
     costs by an insignificant amount for the CFTC, whose 
     administrative costs are subject to appropriation.


                      Pay-As-You-Go Considerations

       The Statutory Pay-As-You-Go Act of 2010 establishes budget-
     reporting and enforcement procedures for legislation 
     affecting direct spending or revenues. CBO estimates that 
     enacting the bill would increase direct spending and decrease 
     revenues by less than $500,000 over the 2026-2036 period; the 
     effect on the deficit would not be significant.


         Increase in Long-Term Net Direct Spending and Deficits

       CBO estimates that enacting H.R. 2478 would not increase 
     net direct spending or on-budget deficits in any of the four 
     consecutive 10-year periods beginning in 2037.


                                Mandates

       If federal financial regulators increase fees to offset the 
     costs associated with implementing the bill, H.R. 2478 would 
     increase the cost of an existing mandate on private entities 
     required to pay those assessments. CBO estimates that the 
     incremental cost of the mandate would be small and would fall 
     well below the annual threshold for private-sector mandates 
     established in the Unfunded Mandates Reform Act (UMRA) ($214 
     million in 2026, adjusted annually for inflation).
       H.R. 2478 contains no intergovernmental mandates as defined 
     in UMRA.
       Estimate Prepared By: Federal Costs: Sean Christensen, 
     Revenues: Nathaniel Frentz, Mandates: Rachel Austin.
       Estimate Reviewed By: Justin Humphrey, Chief, Finance, 
     Housing, and Education Cost Estimates Unit; Kathleen 
     FitzGerald, Chief, Public and Private Mandates Unit; H. 
     Samuel Papenfuss, Deputy Director of Budget Analysis.
       Estimate Approved By: Mark P. Hoeller, for Phillip L. 
     Swagel, Director, Congressional Budget Office.

  Mr. HILL of Arkansas. Mr. Speaker, I rise today in full support of 
our distinguished chair of our Subcommittee on Capital Markets, Mrs. 
Wagner from Missouri, and her bill that she presents today, the 
Financial Exploitation Prevention Act of 2025.
  Every day, bad actors use fraud, scams, and deception to target the 
most vulnerable in our society who may be less able to recognize or 
respond immediately and timely to some form of financial abuse.

[[Page H4224]]

  Literally, over the last few years, I have been inundated every time 
I am in my district and community, like my hometown of Little Rock. I 
hear directly from citizens, the elderly, customers, bankers, small 
business owners, and all consumers who are grappling with check fraud, 
wire fraud, and increasingly sophisticated digital scams.
  My own family has been victim of check fraud more than one time. I am 
grateful to the bank that helped identify that with their system.
  Mr. Speaker, our financial institutions, our broker-dealers, and our 
investment companies are all saddled with being in the first line of 
defense against these schemes that are coming in every shape and form, 
electronically, by paper, and over the telephone, that are targeting 
the customers and clients of our financial services companies.
  These banks, broker-dealers, and investment companies are uniquely 
positioned to identify suspicious transactions and unusual account 
activity. That is the whole mission. We have given those authorities, 
and they have invested billions in surveillance technology to try to do 
that.
  When warning signs emerge, firms should have the ability to take 
reasonable steps to put their customers first and to protect those 
customers from potential harm.
  Chair Wagner's bill, H.R. 2478, which has strong bipartisan support 
and cosponsorship, strengthens those exact protections by providing 
financial institutions and other financial professionals and investment 
companies with the legal certainty needed to temporarily delay 
transactions when financial exploitation or abuse is suspected.
  This legislation is part of the Financial Services Committee's 
broader effort to combat financial fraud and scams plaguing our 
citizens, our neighbors, particularly seniors, and other vulnerable 
Americans.
  By creating a safe harbor for delaying suspicious transactions and 
reporting concerns to the appropriate authorities, this bill helps 
prevent devastating financial losses before they occur.

                              {time}  1220

  Protecting Americans from financial exploitation requires strong 
coordination among families, financial institutions, brokers, financial 
advisers, and, of course, law enforcement. This bill would help 
strengthen those partnerships and provide additional tools to safeguard 
the most vulnerable among us from an avalanche of fraud and abuse.
  Importantly, too, this bill is tailored to address suspected 
exploitation while preserving the rights of customers and maintaining 
appropriate oversight.
  No American should lose their hard-earned money because an investment 
firm or financial institution lacks the authority or certainty to 
intervene where there are clear signs of exploitation that were 
present.
  H.R. 2478 is a commonsense, bipartisan measure that helps protect our 
most vulnerable citizens from the growing number of financial 
predators.
  I thank Chair Wagner and Mr. Gottheimer of New Jersey for their 
leadership on this important issue. I urge all my colleagues to support 
this bill, and I reserve the balance of my time.
  Ms. WATERS. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I rise in support of H.R. 2478, the Financial 
Exploitation Prevention Act of 2025, sponsored by Representative 
Wagner.
  This bill will help protect vulnerable Americans by allowing for 
mutual fund companies to delay the redemption or sale of mutual funds 
when the company believes there is an attempt to defraud a senior or an 
adult who cannot protect themselves.
  Financial fraud targeting older adults is a widespread and growing 
problem. Millions of seniors are victimized each year, and reported 
losses are just soaring. In 2025 alone, America's seniors lost nearly 
$8 billion to fraud, an 80 percent increase over the prior year.
  Seniors are especially vulnerable to scams and financial abuse 
because they may not be familiar with the ever-increasing technological 
sophistication with which current scammers operate. Scammers exploit 
these factors through tactics like AI-powered deep fakes that emulate 
the voice of a grandchild pretending to be in a difficult or dangerous 
situation, romance schemes that prey on lonely seniors, tech support 
hoaxes, lottery scams, and other tricks. The introduction of artificial 
intelligence is making these scams all the more prevalent and harmful.
  We should do all we can to stop these scammers and fraudsters. 
Unfortunately, that is not what Congress and the President are doing. 
The Trump administration, with Republican support in Congress, has been 
shrinking, and in some cases dismantling, the financial cops who detect 
fraud and hold bad actors accountable. Trump's administration has 
walked away from court cases where fraudsters had admitted to harming 
Americans and agreed to pay compensation. As a result, victims didn't 
receive compensation, but the criminals' pockets were lined.
  While this bill could empower financial industry participants to help 
protect seniors when they suspect fraud, it is absurd that, at the same 
time, Republicans are cheering on Trump's attempts to shut down the 
Consumer Financial Protection Bureau and defang and defund the SEC. All 
the while, Trump's family reaps in millions, if not billions, of 
personal profits from their corrupt business dealings and private-
sector shakedowns.
  Some of these actions have a direct impact on Americans. The Trump 
meme coin scam, for example, has resulted in billions of dollars of 
losses for Americans. We cannot talk about fraud without acknowledging 
this massive elephant in the room.
  The American people are asking for this House to hold the Trump 
administration and family accountable. Until then, we are left taking 
small steps, such as passing H.R. 2478.
  Mr. Hill, the chairman of the committee and my friend, talked about 
this having bipartisan support. I don't know if bipartisan support 
means anything these days.
  I am stunned that we worked hard for over 1 year on doing something 
substantive about housing. We had bicameral and bipartisan support and, 
all of a sudden, the President of the United States canceled the 
signing of the bipartisan bill today.
  What is up? What is going on?
  Does it mean anything that Republicans worked very hard?
  Mr. Hill spent a lot of time on the bill, and I spent a lot of time 
on this bill. All of a sudden, the President says: Oh, I don't feel 
like signing it today. As a matter of fact, I want something else. I 
want the SAVE America Act that will undermine voting and strip those 
who have been protected by the Civil Rights Act and the Voting Rights 
Act from being able to vote in a way that our democracy demands and the 
Constitution protects.
  I am very pleased that Mrs. Wagner has this bill. I know she has 
worked on it. I certainly support it, but we need more.
  Mr. Speaker, I reserve the balance of my time.
  Mr. HILL of Arkansas. Mr. Speaker, I yield 5 minutes to the 
gentlewoman from Missouri (Mrs. Wagner), who is the chair of the 
Capital Markets Subcommittee. She has worked on this and has been a 
leader in every way she can in the House to protect our friends and our 
neighbors from financial fraud.
  Mrs. WAGNER. Mr. Speaker, I thank the chairman of the Financial 
Services Committee, my friend, Mr. Hill, for his tremendous support, 
his leadership, and for yielding his time.
  Mr. Speaker, I rise in strong support of my bipartisan bill, H.R. 
2478, the Financial Exploitation Prevention Act.
  Far too often, back home in Missouri and across this Nation, our 
senior citizens are directly targeted for financial fraud. Like 
Chairman Hill, I, too, hear from scores and scores of constituents in 
my district who have fallen prey to these horrible, horrible scams and 
fraudsters.
  The consequences of this crime extend to millions of Americans, with 
one out of every five senior investors falling victim to financial 
fraud and exploitation.

  Sadly, the problem is only getting more severe.
  According to the FTC, fraud perpetrated against those over the age of 
60 increased by nearly 400 percent between 2020 and 2024, Mr. Speaker.

[[Page H4225]]

  The total cost to American seniors reached almost $2.5 billion. Even 
worse, a significant portion of this increase is attributed to 
individual financial losses of over $100,000.
  Think about that for a moment, Mr. Speaker. Seniors and retirees 
across our country work their entire lives to save for their future, 
and they depend on their savings to pay the bills, keep the lights on, 
and put food on the table. A loss of over $100,000 is absolutely 
devastating, and these financial crimes are being committed every 
single day.
  We have the tools to fix this. There are gaps in Federal law that can 
be addressed to prevent this exploitation from occurring, and that is 
exactly what my bill does.
  My bill, the Financial Exploitation Prevention Act, allows financial 
institutions, including investment companies like mutual funds, to 
temporarily delay a transaction if they have a reasonable belief that 
the transaction is the result of financial exploitation.
  By allowing for this pause, the bill creates a crucial window of up 
to 15 days with the possibility of a 10-day extension that will provide 
the time necessary to investigate the situation and notify the 
appropriate authorities.
  This gives potentially vulnerable investors, including our seniors, 
as well as those with certain disabilities, a crucial, extra layer of 
defense that will help preserve the hard-earned savings they have built 
over decades.
  This bill would also establish a safe harbor for financial 
institutions that make a good-faith effort to prevent exploitation. By 
removing the fear of litigation, this change will empower the financial 
system to stop fraudsters in their tracks through timely and decisive 
action.
  Finally, my bill requires the Securities and Exchange Commission to 
report to Congress on additional legislative solutions to further 
combat the financial exploitation of seniors and vulnerable adults.

                              {time}  1230

  This issue, fraud against our seniors, has gone on long enough, and 
we must take action.
  Many of us have had the personal experience of caring for a parent or 
loved one as they grow older. They took care of us when we needed it 
most, and it is our responsibility, our duty, to return the favor.
  This legislation, with strong bipartisan support, will create a new 
tool to protect parents, grandparents, and everyday American families 
across the United States.
  I thank Congressman Gottheimer for joining me in introducing this 
bill. By working together, we can ensure that not only government but 
also the American financial system is doing everything possible to 
protect against fraud and exploitation.
  Mr. Speaker, I strongly urge support of this legislation.
  Ms. WATERS. Mr. Speaker, I yield myself the balance of my time.
  Mr. Speaker, with the advent of new technologies like artificial 
intelligence, senior fraud is more prevalent today than it ever has 
been, and it is only going to get worse. We need to do everything in 
our power to make sure that seniors have the appropriate protections to 
comfortably enjoy retirement.
  Chair Wagner's H.R. 2478 is part of that effort, allowing mutual fund 
providers to delay redemptions of a senior's shares if they suspect 
they may be falling victim to a scam.
  Mr. Speaker, we are in a terrible time in this country. We are in a 
terrible time because we have so many difficulties with the economy and 
the groceries are higher. Gasoline is out of control. The price is 
absolutely unusual and unnecessary, except the President of the United 
States said he doesn't care.
  As a matter of fact, the President of the United States said he loves 
inflation, for example, and we know what his tariffs have done to our 
economy. Yet, he is in another country saying that he doesn't care 
about the financial situation that we are confronted with.
  This is a good bill. This is a bill to try and protect our seniors. 
Our seniors need protection. Many of them are on fixed incomes. Many of 
them don't have a lot of money, and if they are ripped off, they may 
end up homeless and on the street. The President doesn't care about 
that. Yes, this is a bipartisan bill. Bipartisan, for those who are 
listening, means that both sides of the aisle, Democrats and 
Republicans, agree, but we don't know whether the President will agree. 
For all I know, he may veto the bill. We don't know what to expect from 
him.
  We are in a terrible situation with the President of the United 
States of America. We know he canceled the bill's signing that is 
supported by both sides of the aisle, in both the House and the Senate, 
knowing that we have 800,000 people who are on the streets in this 
country every night and he is not willing to generously step up to the 
plate and say: I support a bill that is going to get housing built for 
the average family. We are going to support a bill to keep people off 
the street, homelessness. We are going to support a bill that ensures 
that people have an opportunity to pursue their talent and to do what 
they can to make their lives more comfortable.
  If he can't support that and he is canceling it today, I don't know 
what we can expect about a good bill like this that is protecting 
seniors. I just ask all of the Members of the House of Representatives, 
vote ``aye'' on this bill. Vote ``aye'' on the bill.
  Mr. Speaker, for those who have influence with the President of the 
United States, call him and tell him: Mr. President, don't veto this. 
Mr. President, come on back and sign this housing bill so we can deal 
with this housing crisis. Mr. President, get us out of this war in 
Iran. Mr. President, do something to deal with this economy where 
people are getting hurt and harmed every day.
  Mr. Speaker, we could go on talking about it. It is embarrassing. The 
American people should not have to hear this kind of conversation, but 
those of us who were sent here by the people we represent have to speak 
truth to power. That is what we do when we come up with legislation 
with both sides of the aisle supporting it, in both the House and 
Senate supporting it. We have to get in the President's face and say: 
Sign these bills. He has to talk about these problems. He has to deal 
with this economy, and that is a bit of what we are doing today. I have 
added to it a little bit, but that is my responsibility.
  Mr. Speaker, I yield back the balance of my time.
  Mr. HILL of Arkansas. Mr. Speaker, I yield myself the balance of my 
time.
  Mr. Speaker, I thank the ranking member and Mr. Gottheimer for 
working with the majority on this bill. I will add that this is a very 
complex subject across the board trying to protect our seniors and our 
consumers across the country, particularly in financial services.
  I think this bill is a step in the right direction, but we have many 
other things that the committee has been working on on a bipartisan 
basis. The Postal Service, the Secret Service, the Federal 
communications oversight, Federal Trade Commission, all these Federal 
agencies have influence on whether we are going to beat the criminals 
at their game. As they get artificial intelligence and new technologies 
to try to get in the pocketbooks, in the investment statements, into 
the credit cards of American consumers and households, know that people 
like Ann Wagner, Josh Gottheimer, Maxine Waters, and French Hill are 
saying no.
  We want to give the tools to our financial institutions and 
enforcement to do something about it, but it also takes an education of 
our families. You can't turn your password over to people. You can't 
trust people when they call you on the phone and tell you to bring 
$5,000 down to the courthouse or put money in a bitcoin ATM. We also 
have that obligation every day on this House floor to educate our 
families to trust but verify when somebody approaches them about their 
very, very valuable financial information.
  A Member of Congress from North Carolina called me and said: Is there 
any way you would be willing to talk to this lawyer, this family in 
North Carolina? Husband and wife retired, the spouse, the wife, said: I 
have been called. I need to send $250,000 for this investment 
opportunity. The husband said: I don't know that we should do that. She 
said: Well, I have done my homework. She called the bank, Mr. Speaker, 
and said: Would you wire

[[Page H4226]]

$250,000 to this investment opportunity. And the banker said: Ms. 
Jones, I mean, are you sure? You have never done this before. You don't 
have that kind of money.

  Mr. Speaker, I use that as a small example. It didn't turn out well, 
but it is about educating. Again, the work that Chairwoman Wagner and 
Representative Gottheimer are doing is what we need to be doing. We are 
going to continue to bring bills to this House floor that protect our 
households from the fraudsters that are now going parabolic in their 
talent to steal our money through artificial intelligence, cell phones, 
text messages, emails, romance schemes, whatever that is, but she 
pointed it out, and I am with her. We are going to do this together.
  Mr. Speaker, I urge a ``yes'' vote on this bill. I thank the 
gentlewoman for bringing it to the floor today, and I yield back the 
balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Arkansas (Mr. Hill) that the House suspend the rules and 
pass the bill, H.R. 2478, as amended.
  The question was taken.
  The SPEAKER pro tempore. In the opinion of the Chair, two-thirds 
being in the affirmative, the ayes have it.
  Mr. HILL of Arkansas. Mr. Speaker, I object to the vote on the ground 
that a quorum is not present and make the point of order that a quorum 
is not present.
  The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, further 
proceedings on this question will be postponed.
  The point of no quorum is considered withdrawn.

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