HR 5911, Banking Fair Hire Act

Congressional Budget Office

Estimated price

HR 5911, Banking Fair Hire Act

As ordered reported by the House Committee on Financial Services on November 16, 2021

By fiscal year, in millions of dollars




Direct expenses (expenses)








Increase or decrease (-)




in deficit

Expenditure subject to




Allocation (expenses)

Statutory remuneration


Effects of mandate

the procedures apply?

Increases budget deficits in all


Contains an intergovernmental mandate?


four consecutive years

Yes, under

periods beginning in 2032?

Contains a private sector mandate?


* = between zero and $500,000.

HR 5911 would amend statutory prohibitions and limitations that restrict the employment of certain individuals convicted of criminal offenses by insured depository institutions and insured credit unions. Under current law, some convictions prohibit a person from being employed by these institutions without the prior consent of the National Credit Union Administration (NCUA) or the Federal Deposit Insurance Corporation (FDIC). Under HR 5911, both agencies would be required to issue a rule providing additional exemptions to consent requirements. The bill would also direct the FDIC and NCUA to establish new procedures governing the review of consent applications and more specifically define offenses requiring agency consent. Finally, each agency would be required to report to Congress on the results of these changes.

The operating costs of the FDIC and NCUA are classified as direct expenses. Using information from these two agencies, the CBO estimates that each agency would need about two employees to meet the bill’s requirements over a three-year period, increasing gross direct spending by about $2 million over the period 2022-2031. However, the NCUA collects fees from credit unions to offset its operating costs; these costs are treated as reductions in direct expenditures. So, on the net, the CBO estimates that enacting the bill would increase direct spending by $1 million over the same period.

CBO Cost Estimate

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HR 5911, as ordered by the House Committee on Financial Services

If the NCUA increased annual fee collections to offset the costs associated with implementing the bill, HR 5911 would increase the cost of an existing private sector retainer for entities required to pay those fees. The CBO estimates that the incremental cost of the mandate would be low and would fall below the thresholds established in the Unfunded Mandates Reform Act (UMRA) for private sector mandates ($170 million in 2021, adjusted annually based on inflation).

HR 5911 does not contain intergovernmental mandates as defined in the UMRA.

The CBO staff contact for this estimate is Stephen Rabent (for federal costs) and Rachel Austin (for warrants). The estimate was reviewed by H. Samuel Papenfuss, Deputy Director of Budget Analysis.


CBO – Congressional Budget Office published this content on February 09, 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unmodified, on February 09, 2022 21:38:47 UTC.

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