H.R. 1109 would require the federal financial regulators to coordinate with state banking regulators on the regulation and examination of certain companies that banks contract with to perform services. The federal regulators include the Federal Deposit Insurance Corporation (FDIC), the Office of the Comptroller of the Currency (OCC), and the Federal Reserve.
H.R. 1109 would impose small administrative costs on those regulators because they would be required to increase their current level of coordination with state banking regulators. The operating costs for the FDIC and the OCC are classified in the federal budget as direct spending. Using information from the agencies, CBO estimates that enacting the bill would cost less than $500,000 annually and would increase gross direct spending by $1 million over the 2023-2033 period. However, the OCC collects fees from financial institutions to offset their operating costs and those fees are treated as reductions in direct spending. Thus, CBO estimates that, on net, enacting the bill would have an insignificant effect on direct spending over the same period.
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. 1109 would decrease revenues by less than $500,000 over the 2023-2033 period.