[House Report 119-710]
[From the U.S. Government Publishing Office]
119th Congress } { Report
HOUSE OF REPRESENTATIVES
2d Session } { 119-710
======================================================================
PRICE STABILITY ACT OF 2026
_______
June 24, 2026.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Hill of Arkansas, from the Committee on Financial Services,
submitted the following
R E P O R T
together with
MINORITY VIEWS
[To accompany H.R. 5396]
The Committee on Financial Services, to whom was referred
the bill (H.R. 5396) to amend the Federal Reserve Act to remove
the mandate on the Board of Governors of the Federal Reserve
System and the Federal Open Market Committee to focus on
maximum employment, having considered the same, reports
favorably thereon with an amendment and recommends that the
bill as amended do pass.
CONTENTS
Page
Purpose and Summary.............................................. 2
Background and Need for Legislation.............................. 2
Committee Consideration.......................................... 2
Related Hearings................................................. 3
Committee Votes.................................................. 3
Committee Oversight Findings..................................... 10
Performance Goals and Objectives................................. 10
Committee Cost Estimate.......................................... 10
New Budget Authority and CBO Cost Estimate....................... 10
Unfunded Mandates Statement...................................... 10
Earmark Statement................................................ 10
Federal Advisory Committee Act Statement......................... 10
Applicability to the Legislative Branch.......................... 11
Duplication of Federal Programs.................................. 11
Section-by-Section Analysis of the Legislation................... 11
Changes in Existing Law Made by the Bill, as Reported............ 11
Documents Included by Unanimous Consent.......................... 12
Minority Views................................................... 14
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Price Stability Act of 2026''.
SEC. 2. REMOVAL OF DUAL MANDATE.
Section 2A of the Federal Reserve Act (12 U.S.C. 225a) is amended by
striking ``maximum employment, stable prices,'' and inserting ``stable
prices''.
Purpose and Summary
H.R. 5396, the Price Stability Act of 2025, was introduced
on September 16, 2025, by Chairman French Hill (AR-02). H.R.
5396 replaces the Federal Reserve's current dual mandate of
maximum employment and stable prices with a single price
stability mandate.
Background and Need for Legislation
Congress provided a statutory mandate for the Federal
Reserve to promote maximum employment and stable prices. Over
the long run, the Federal Reserve's monetary policy tools only
influence price stability. Maximum employment, however, changes
over time due to non-monetary factors. Therefore, fiscal policy
is better equipped to address maximum employment.
Additionally, maximum employment is not directly
measurable. The inability to directly measure maximum
employment risks the Federal Reserve holding interest rates too
low for too long, which could increase runaway inflation.
Should this happen, the Federal Reserve would likely raise
interest rates meaningfully higher to bring down inflation back
to target; but higher rates are usually associated with higher
borrowing costs, lower economic growth, potential financial
instability, and possibly a recession. The Federal Reserve
should focus its time, attention, and resources solely on
preventing or addressing inflation.
Committee Consideration
119TH CONGRESS
On September 16, 2025, Chairman Hill introduced H.R. 5396,
the Price Stability Act of 2026, with Representatives Marlin
Stutzman (R-IN) and Byron Donalds (R-FL) as original
cosponsors. The bill was referred solely to the Committee on
Financial Services.
A discussion draft version of the bill was attached to the
September 17, 2025, Task Force on Monetary Policy, Treasury
Market Resilience, and Economic Prosperity hearing titled
``Less Mandates. More Independence.''
On May 13, 2026, the Committee on Financial Services met in
open session to consider, among others, H.R. 5396. The
Committee ordered H.R. 5396, as amended, to be reported with a
favorable recommendation to the House of Representatives.
118TH CONGRESS
On October 30, 2023, Representative Hill introduced H.R.
6117, the Price Stability Act of 2023, a prior iteration of
H.R. 5396, with Representative Donalds as original cosponsor.
The bill was referred solely to the Committee on Financial
Services. There was no further legislative action for H.R. 6117
in the 118th Congress.
117TH CONGRESS
On October 30, 2023, Representative Hill introduced H.R.
7209, the Price Stability Act of 2022, a prior iteration of
H.R. 5396, with Representative Donalds as original cosponsor.
Representatives Andy Barr (R-KY), Ann Wagner (R-MO), and
William Timmons (R-SC) were added subsequently as cosponsors.
The bill was referred solely to the Committee on Financial
Services. There was no further legislative action for H.R. 7209
in the 117th Congress.
RELATED BILL INTRODUCTIONS IN PRIOR CONGRESSES
Iterations of this bill have been introduced in prior
Congresses dating to 2013. Each of the following bills was
introduced with no further legislative action taken by the
Committee in the respective Congresses.
115th Congress, H.R. 2172, the Focusing the Fed on
the Currency of the United States Act of 2017 (FFOCUS Act of
2017), introduced by former Representative Mia Love (R-UT).
114th Congress, H.R. 1154, the Focusing the Fed on
the Currency of the United States Act of 2015 (FFOCUS Act of
2015), introduced by Representative Stutzman.
113th Congress, H.R. 492, the Focusing the Fed on
the Currency of the United States Act of 2013 (FFOCUS Act of
2013), introduced by Representative Stutzman.
Related Hearings
Pursuant to clause 3(c)(6) of rule XIII of the Rules of the
House of Representatives, the following hearing was used to
develop H.R. 5396:
On September 17, 2025, the Task Force on Monetary Policy,
Treasury Market Resilience, and Economic Prosperity held a
hearing titled, ``Less Mandates. More Independence.'' The
hearing explored how adding additional goals outside the
Federal Reserve's current mandate hinders its ability to focus
on price stability, and the costs associated with failing to
achieve its objectives. Members reviewed the optimal number of
mandates the Federal Reserve should have, such as a single
mandate on price stability, the current dual mandate on price
stability and maximum employment, or mandates greater than two.
Lastly, the hearing examined how adding more mandates impacts
the Federal Reserve's independence. A discussion draft version
of H.R. 5396 was noticed for legislative consideration at this
hearing.
The Task Force heard testimony from: Dr. Douglas Holtz
Eakin, President, American Action Forum; Mr. Alex Pollock,
Senior Fellow, Mises Institute; Mr. Curtis Dubay, Chief
Economist, U.S. Chamber of Commerce; and Mr. Skanda Amarnath,
Executive Director, Employ America.
Committee Votes
Clause 3(b) of rule XIII of the Rules of the House of
Representatives requires the Committee Report to include record
votes on the motion to report legislation and amendments
thereto.
On May 13, 2026, the Committee ordered H.R. 5396, as
amended, to be reported favorably to the House by a recorded
vote of 30 yeas and 21 nays, a quorum being present. (Record
Vote No. FC-274).
The Committee considered the following amendments to H.R.
5396:
Representative French Hill (R-AR) offered an
amendment in the nature of a substitute, which made minor edits
and technical changes. This amendment was adopted by a voice
vote.
Representative Maxine Waters (D-CA) offered an
amendment (No. 1), designated HR5396_01. This amendment adds a
section to the bill expressing the sense of Congress that it
supports and defends the rule of law regarding Federal Reserve
independence and that Congress believes actions by the
Department of Justice designed to intimidate Federal Reserve
officials are prohibited by law and the Constitution. This
amendment failed by a recorded vote of 22 yeas and 28 nays, a
quorum being present. (Record Vote No. FC-270).
Representative Ayanna Pressley (D-MA) offered an
amendment (No. 2), designated PRESSMA_076. This amendment
states that nothing in the bill can be construed to prevent the
Federal Reserve or Federal Open Market Committee from taking
any action to increase employment. This amendment failed by a
recorded vote of 22 yeas and 29 nays, a quorum being present.
(Record Vote No. FC-271).
Representative Pressley offered an amendment (No.
4), designated PRESSMA_075. This amendment renames the bill the
Ignore High Unemployment Act. This amendment failed by a
recorded vote of 20 yeas and 31 nays, a quorum being present.
(Record Vote No. FC-272).
Representative Pressley offered an amendment (No.
5), designated HR5396_03. This amendment directs the Federal
Reserve to carry out a study and issue a report to Congress on
the impact of artificial intelligence on employment in the
United States. This amendment failed by a recorded vote of 22
yeas and 29 nays, a quorum being present. (Record Vote No. FC-
273).
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
Committee Oversight Findings
Pursuant to clause 3(c) of rule XIII of the Rules of the
House of Representatives, the findings and recommendations of
the Committee, based on oversight activities under clause
2(b)(1) of rule X of the Rules of the House of Representatives
are incorporated in the descriptive portions of this report.
Performance Goals and Objectives
Pursuant to clause 3(c)(4) of rule XIII of the Rules of the
House of Representatives, the goal of H.R. 5396 is to redefine
the Federal Reserve's core mission as price stability.
Committee Cost Estimate
Clause 3(d)(1) of rule XIII of the Rules of the House of
Representatives requires an estimate and a comparison of the
costs that would be incurred in carrying out H.R. 5396. The
Committee has requested but not received a cost estimate from
the Director of the Congressional Budget Office (CBO). However,
pursuant to clause 3(d)(1) of rule XIII of the Rules of the
House of Representatives, the Committee will adopt as its own
the cost estimate by the Director of the CBO once it has been
prepared.
New Budget Authority and CBO Cost Estimate
With respect to the requirements of clause 3(c)(2) of rule
XIII of the Rules of the House of Representatives and section
308(a) of the Congressional Budget Act of 1974 and with respect
to requirements of clause 3(c)(3) of rule XIII of the Rules of
the House of Representatives and section 402 of the
Congressional Budget Act of 1974, the Committee will adopt as
its own the cost estimate for the bill prepared by the Director
of the CBO. However, a cost estimate was not made available to
the Committee in time for the filing of this report. The
Chairman of the Committee shall cause such estimate to be
printed in the Congressional Record upon its receipt by the
Committee.
Unfunded Mandates Statement
The Committee has requested but not received from the
Director of the CBO an estimate of the Federal mandates
pursuant to section 423 of the Unfunded Mandates Reform Act.
The Chairman of the Committee shall cause such estimate to be
printed in the Congressional Record upon its receipt by the
Committee.
Earmark Statement
In compliance with clause 9 of rule XXI of the Rules of the
House of Representatives, this bill, as reported, contains no
congressional earmarks, limited tax benefits, or limited tariff
benefits as defined in clause 9(e), 9(f), or 9(g) of rule XXI.
Federal Advisory Committee Act Statement
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act were created by this
legislation.
Applicability to the Legislative Branch
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act.
Duplication of Federal Programs
Pursuant to clause 3(c)(5) of rule XIII of the Rules of the
House of Representatives, the Committee states that no
provision of the bill establishes or reauthorizes a program of
the Federal Government known to be duplicative of another
Federal program, including any program that was included in a
report to Congress pursuant to section 21 of the Public Law
111-139 or the most recent Catalog of Federal Domestic
Assistance.
Section-by-Section Analysis of the Legislation
Section 1. Short title
Section 1 provides the short title is the ``Price Stability
Act of 2026''.
Section 2. Removal of dual mandate
Section 2 removes the Federal Reserve's dual mandate and
replaces it with a single price stability mandate.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italics, and existing law in which no
change is proposed is shown in roman):
FEDERAL RESERVE ACT
* * * * * * *
general policy: congressional review
Sec. 2A. The Board of Governors of the Federal Reserve
System and the Federal Open Market Committee shall maintain
long run growth of the monetary and credit aggregates
commensurate with the economy's long run potential to increase
production, so as to promote effectively the goals of [maximum
employment, stable prices,] stable prices and moderate long-
term interest rates.
* * * * * * *
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
MINORITY VIEWS
H.R. 5396 amends the Federal Reserve Act to remove the
maximum employment mandate of the Federal Reserve and Federal
Open Markets Committee (``FOMC''). The Federal Reserve and the
FOMC are required to ``promote effectively the goals of maximum
employment, stable prices, and moderate long-term interest
rates.''\11\ The maximum employment mandate has been part of
the Federal Reserve's dual mandate since 1977, and requires the
Federal Reserve to prioritize reducing unemployment in addition
to maintaining stable prices (i.e., low inflation),
collectively known as the ``dual mandate.'' Consistent with the
Federal Reserve's long-run statutory objectives, Federal
Reserve Governor Lisa Cook has stated that ``Maximum employment
promotes business investment, boosting productivity and the
economy's long-run growth potential.''\12\
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\11\See Section 2A of the Federal Reserve Act, 12 U.S.C. Sec. 225a.
\12\Lisa D. Cook, The Dual Mandate and the Balance of Risks at
Ec10b Principles of Economics Lecture, Harvard University (Mar. 25,
2026).
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Americans are struggling from rising housing costs, higher
borrowing costs, and record levels of financial stress.
Inflation data show that wages are not keeping up either.
Families are working harder than ever and still falling further
behind. People are taking out ``buy now, pay later loans,''
dipping into retirement savings, and working multiple jobs just
to meet basic needs. And, according to the Federal Reserve, 10%
of Americans are skipping meals just to get by.\13\ All of this
has been made worse by the President's decision to wage an
unlawful war in Iran that has increased energy prices in the
U.S. and across the globe. Nevertheless, instead of helping
Americans struggling under Trump's failed economic policies,
H.R. 5396 goes in the exact opposite direction.
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\13\CNN, New Fed report warns of `remarkable' increase in
households skipping meals due to food costs (Mar. 27, 2026); Federal
Reserve Bank of New York, Survey of Consumer Expectations (February
2026).
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It is deeply disappointing that in response to an
escalating affordability crisis and rising unemployment rates,
Republicans respond by telling the Federal Reserve to stop
caring about workers and whether they are employed. Ms.
Corretta Scott King advocated for Congress to pass the Federal
Reserve's employment mandate into law, an important win for the
civil rights and labor movements. Coretta Scott King championed
this mandate because she knew that unemployment was a primary
factor causing poverty and social problems, and how it
disproportionately hurt communities of color. She knew then,
and what we have all learned since it became the law of the
land 50 years ago, was the Federal Reserve's powerful monetary
policy tools could be deployed to reduce unemployment while
also maintaining stable prices.
Decades after establishing the maximum employment mandate
and under Democratic leadership, unemployment remained at
historic lows--below 4% for the longest stretch in 50 years.
However, now, after Trump's trade policies, unemployment is
again creeping up to 4.3 percent, or 7.3 million people
unemployed.\14\ Unemployment rates are higher for teenage
workers, at 14.7 percent, Black workers, at 7.4 percent, and
Hispanic workers, at 5.4 percent.\15\ In 2025, Black women
faced the largest employment losses, especially for college
graduates and workers in the public sector, worsened by Trump's
unlawful cuts to the federal government workforce. The maximum
unemployment mandate serves America's workforce in a time of
major instability. Recent unemployment data validate concerns
that doing away with the full employment mandate at this time
would be reckless and unwarranted.
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\14\U.S. Bureau of Labor Statistics, Civilian unemployment rate
(accessed Jun. 17, 2026).
\15\U.S. Bureau of Labor Statistics, A-10 Unemployment rates by
age, sex, and marital status, seasonally adjusted (accessed Jun. 17,
2026); U.S. Bureau of Labor Statistics, E-16. Unemployment rates by
age, sex, race, and Hispanic or Latino ethnicity (accessed Jun. 17,
2026).
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During markup, Democrats offered amendments to H.R. 5396,
each opposed by Republicans, that would have made the following
changes to the bill:\16\
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\16\House Committee on Financial Services, Markup of Various
Measures (May 13, 2026). Rep. Pressley offered an additional amendment
that would require the Bureau of Labor Statistics to regularly and
publicly report unemployment data relating to individual demographics
categorized by race and ethnicity, gender, geography, and industry,
which was ruled out of order as nongermane to H.R. 5396.
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Ranking Member Waters's amendment would add
a Sense of Congress supporting the importance of
maintaining the Fed's independence and that the
Department of Justice is prohibited from opening an
investigation into Federal Reserve officials without
due process;
Rep. Pressley's first amendment would add a
rule of construction stating that nothing in the Act
may be construed to prevent the Fed or FOMC from taking
action to increase employment;
Rep. Pressley's second amendment would
rename the bill to the Ignoring High Unemployment Act;
and,
Rep. Pressley's third amendment would
replace the text of the bill with language directing
the Fed study the likely impacts of AI adoption on
employment in the United States. Americans for
Financial Reform sponsored a letter campaign opposing
H.R. 5396.
For these reasons, we oppose H.R. 5396.
Sincerely,
Maxine Waters,
Ranking Member.
Nydia M. Velazquez,
Bill Foster,
Al Green,
Emanuel Cleaver, II,
Joyce Beatty,
Ayanna Pressley,
Rashida Tlaib,
Members of Congress.
[all]