United States Senate Committee on Banking, Housing, and Urban Affairs

Committee information

• Date created: March 15, 1913
• Members: Twenty-four members in the 119th Congress (2025-2027)
• Subcommittees: Economic Policy; Housing, Transportation, and Community Development; Financial Institutions and Consumer Protection; National Security and International Trade and Finance; Securities, Insurance, and Investment

Role

The United States Senate Committee on Banking, Housing, and Urban Affairs is one of sixteen standing committees of the US Senate. The committee has legislative jurisdiction over such diverse areas as banking, insurance, money and credit, the federal monetary policy, the stabilization of the economy, financial aid for businesses and industries, export promotion and controls, public and private housing, nursing home construction, urban development, public transportation systems, and government contracts. These jurisdictions are further divided among the committee’s five subcommittees.

Such notable entities as the Federal Reserve System, the Council of Economic Advisors (CEA), the Consumer Financial Protection Bureau (CFPB), the Federal Deposit Insurance Corporation (FDIC), the Department of Housing and Urban Development (HUD), the Federal Housing Administration (FHA), the US Export-Import Bank (EXIM), the Securities Exchange Commission (SEC), and Fannie Mae and Freddie Mac all fall under the jurisdiction of the Committee on Banking, Housing, and Urban Affairs and are overseen by one of its subcommittees. So many organizations and activities fall under this committee’s purview that the legislation and regulations it deals with impact the lives of most—if not all—individuals living in the United States.

History

In its early years, the Senate did not have a standing committee system. Instead, temporary committees were formed as specific needs arose. The number of temporary committees appointed varied with each new session of Congress. Under this system, committee membership was often unevenly divided among senators, with some serving on many temporary committees and others on a few or none at all. As the new nation’s needs grew and developed, so did the need for a more formalized committee system within the Senate. Responding to that need, the Senate of the 14th Congress (1815–1817) created eleven permanent standing committees in 1816. Each new standing committee was responsible for studies, investigations, and legislation pertaining to its area of jurisdiction.

The Committee on Banking, Housing, and Urban Affairs was not among the eleven original Senate committees. In fact, for nearly a century after the inception of the standing Senate committees, banking did not have its own dedicated committee. Instead, legislation related to currency and banking fell under the jurisdiction of the Committee on Finance. One of the major accomplishments of the first select Finance Committee in 1816 was the Bank Act, which provided for the Second Bank of the United States, a centralized bank that would help stabilize the nation’s financial system. Although the committee considered the Bank Act successful, a bill that would have renewed the Second Bank’s charter after its initial twenty-year charter expired was vetoed by President Andrew Jackson. It did not have enough support in the Senate for the veto to be overridden.

It was not until the passage of the National Bank Act in 1864 that a new system of national banks was created. However, although the legislation spurred the growth of nationally chartered banks, the US financial system continued to lack stability. In the late nineteenth century, financial crises occurred fairly often. When one bank failed, the resulting runs on other banks by panicked customers sometimes resulted in more bank failures. In 1907, a particularly severe economic crisis occurred. Then the need for a stronger centralized banking system that could stabilize currency in times of crisis and strengthen the economic standing of the country was clear.

Senator Robert Owen, a Democrat from Oklahoma, took the lead in working to develop a new national banking policy. Owen and other congressional leaders realized that the complexity of the nation’s need for banking reform warranted the formation of a separate Senate committee focused on banking. This was especially true since, at the time, the Finance Committee was mired in debates about tariff and income tax legislation. Thus, on March 15, 1913, the Committee on Banking and Currency was established with Senator Robert Owen as its first chairperson. The committee’s most immediate purpose was to investigate bank conditions. Meanwhile, with encouragement from President Woodrow Wilson, the House Banking Committee—which had existed since 1865 and was more established than its newly formed counterpart in the Senate—drafted and passed a bill for the creation of a Federal Reserve System (FRS). After the passage of the House bill, the Senate Committee on Banking and Currency held hearings and debated the bill. It eventually produced a version that had the support of more than two-thirds of Senate Democrats but almost no support from Senate Republicans. Despite the lack of bipartisan support, the Federal Reserve Act passed on December 23, 1913. The act was the first landmark achievement of the Senate committee. It laid out the fundamental structure and responsibilities of the FRS, the central banking system that is still used by the United States in the twenty-first century.

In the decades following the Federal Reserve Act, the Committee on Banking and Currency contributed to the passage of several other key pieces of legislation. The McFadden Act of 1927 permanently renewed the charters of the Federal Reserve Banks (initially formed with limited charters under the Federal Reserve Act). It also permitted federally chartered banks to open multiple branches. Prior to the McFadden Act, such banks were required to operate from a single location. The committee’s 1932 investigation of the 1929 stock market crash that sparked the Great Depression led to the passage of the Glass-Steagall Act of 1933. It separated commercial banking from investment banking and provided for the creation of the Federal Deposit Insurance Corporation, an entity that became a permanent government agency under the Banking Act of 1935.

Gradually, the Committee on Banking and Currency’s jurisdiction expanded to areas not exclusively related to banking and currency. By 1947, public and private housing was part of its domain. Jurisdiction later expanded to include such varied interests as defense production, the promotion of foreign trade and exports, the negotiation of government contracts, urban development, and mass transit. Urban affairs were formally assigned to the committee as part of the Legislative Reorganization Act of 1970. To reflect these changes, the Banking and Currency Committee was renamed the Committee on Banking, Housing, and Urban Affairs on October 26, 1970.

Since 1970, the committee has worked on a number of acts that have substantially impacted the banking and finance industries for both businesses and consumers. The Community Reinvestment Act of 1977 requires financial institutions to extend credit to the communities from which they take deposits. They must do this even if the communities are low- or moderate-income and appear to pose a lending risk. The Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994 provided consistent standards and regulations for interstate banking. This refers to banks branching or merging across state lines. The Gramm-Leach-Bliley Act of 1999 requires financial institutions to protect consumer data and disclose when and how they use such data. The USA PATRIOT Act of 2001 is designed to help prevent, detect, and prosecute terrorism and money laundering. The Sarbanes-Oxley Act of 2002, which was passed after the corrupt practices of several major corporations were exposed, includes measures to improve corporate financial reporting and auditing and prevent corporate fraud. Most recently, the Committee on Banking, Housing, and Urban Affairs introduced the Economic Growth, Regulatory Relief, and Consumer Protection Act. This act, passed in March 2018 with support from both the Democratic and Republican parties, provides for different levels of regulation for financial institutions of different sizes. In the early and mid-2020s, the Economic Growth, Regulatory Relief and Consumer Protection Act and the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) were the Committee on Banking, Housing, and Urban Affairs' main focus.

Subcommittees

During the 119th Congress, the Senate Committee on Banking, Housing, and Urban Affairs included twenty-four senators, with thirteen majority (Republican) and eleven minority (Democrat) members. Tim Scott, a Republican senator from South Carolina, served as chair, and Elizabeth Warren, a Democratic senator from Massachusetts, served as ranking member. The full committee was divided into five standing subcommittees: the Subcommittee on Economic Policy, the Subcommittee on Financial Institutions and Consumer Protection, the Subcommittee on Housing, Transportation, and Community Development, the Subcommittee on National Security and International Trade and Finance, and the Subcommittee on Securities, Insurance, and Investment.

United States Senate Banking, Housing, and Urban Affairs Subcommittee on Economic Policy

The Subcommittee on Economic Policy oversees the Financial Stability Oversight Counsel (FSOC), the Office of Financial Research (OFR), and the Council of Economic Advisors (CEA). The subcommittee also oversees aspects of the Federal Reserve System (FRS). Other areas of jurisdiction include economic growth, employment, and price stability; money and credit; the control of prices of goods and services; economic stabilization; financial aid to businesses and industries; loan guarantees; flood insurance and disaster assistance; and small business lending. During the 119th Congress, the Subcommittee on Economic Policy included five majority (Republican) and four minority (Democrat) members.

United States Senate Banking, Housing, and Urban Affairs Subcommittee on Financial Institutions and Consumer Protection

The Subcommittee on Financial Institutions and Consumer Protection oversees banks, savings associations, credit unions, other financial institutions, and e-commerce. In addition, it shares oversight of the FRS with the Subcommittee on Economic Policy. While the Subcommittee on Economic Policy oversees the FRS’s monetary policies, the Subcommittee on Financial Institutions and Consumer Protection deals with FRS’s regulatory activities. Organizations under the jurisdiction of the Subcommittee on Financial Institutions and Consumer Protection include the Federal Home Loan Bank System, the Office of the Comptroller of the Currency (OCC), the Federal Deposit Insurance Corporation (FDIC), the National Credit Union Administration (NCUA), and the Consumer Financial Protection Bureau (CFPB). During the 119th Congress, the Subcommittee on Financial Institutions and Consumer Protection included eight majority (Republican) and seven minority (Democrat) members.

United States Senate Banking, Housing, and Urban Affairs Subcommittee on Housing, Transportation, and Community Development

The Banking Subcommittee on Housing, Transportation, and Community Development deals with issues and legislation related to urban mass transit, urban affairs and development, affordable housing, foreclosure mitigation, mortgage servicing, senior housing, nursing home construction, and Indian housing. Entities under the subcommittee's jurisdiction include the Federal Transit Administration, the Department of Housing and Urban Development (HUD), the Home Affordable Modification Program (HAMP), and the Federal Housing Authority (FHA). During the 119th Congress, the Subcommittee on Housing, Transportation, and Community Development included six majority (Republican) and five minority (Democrat) members.

United States Senate Banking, Housing, and Urban Affairs Subcommittee on National Security and International Trade and Finance

The Subcommittee on National Security and International Trade and Finance oversees the Export-Import Bank of the United States (EXIM), the International Trade Administration (ITA), and the Bureau of Export Administration. Specific areas of jurisdiction include export and foreign trade promotion, export controls, export financing, international economic policy, and international financial and development institutions as they relate to the United States and the Defense Production Act. During the 119th Congress, the Subcommittee on National Security and International Trade and Finance included four majority (Republican) and three minority (Democrat) members.

United States Senate Banking, Housing, and Urban Affairs Subcommittee on Securities, Insurance, and Investment

The Subcommittee on Securities, Insurance, and Investment deals with matters related to securities, annuities, and other financial investments. It also oversees government securities, financial exchanges and markets, financial derivatives, accounting standards, and insurance. Entities under the jurisdiction of this subcommittee include the Securities Exchange Commission (SEC), the Securities Investor Protection Corporation (SIPC), the Commodity Futures Trading Commission (CFTC), Fannie Mae (the Federal National Mortgage Association, or FNMA), and Freddie Mac (the Federal Home Loan Mortgage Corporation, or FHLMC). During the 119th Congress, the Subcommittee on Securities, Insurance, and Investment included eight majority (Republican) and seven minority (Democrat) members.

Bibliography

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