What This Bill Does
This bill combines two major policy changes: it tightens rules for FBI queries and other surveillance activities under the Foreign Intelligence Surveillance Act (FISA), and it bars Federal Reserve banks from issuing or indirectly issuing a central bank digital currency (CBDC). On the surveillance side, it adds monthly civil-liberties review of U.S.-person queries, criminal penalties for certain FBI violations, a new requirement that U.S. persons generally be targeted only through a warrant or other court order, and a GAO audit of section 702 targeting procedures. On the monetary side, it would prohibit Federal Reserve banks from offering financial products or services directly to individuals, maintaining individual accounts, or issuing a CBDC or a substantially similar digital asset. It also extends certain FISA Title VII authorities from April 30, 2026, to April 30, 2029.
- Requires monthly FBI U.S.-person query statements to go to the ODNI Civil Liberties Protection Officer.
- Creates up to 5-year criminal penalties for FBI employees who knowingly and willfully violate section 702 querying procedures.
- Bars intentional targeting of a U.S. person under section 702 without a warrant or other court order.
- Extends FISA Title VII authorities from April 30, 2026, to April 30, 2029.
- Forbids Federal Reserve banks from issuing a CBDC or maintaining individual accounts.
Who This Bill Affects
For the general public, the bill would not change everyday taxes or benefits, but it could affect privacy, surveillance oversight, and the future of digital payments. If enacted, FBI use of section 702 queries involving U.S. persons would face more review and possible criminal penalties for violations, while Federal Reserve banks would be barred from issuing a CBDC or offering accounts or services directly to individuals. It also extends certain FISA authorities to April 30, 2029, which would preserve current intelligence powers while adding new constraints and oversight.
See how this bill affects you — sign in for a personalized analysisWho Supports & Opposes This
- Civil liberties advocates They would argue the bill adds meaningful oversight to section 702 queries by requiring monthly review, referral to the Inspector General, and criminal penalties for deliberate misuse. In their view, this helps deter improper searches involving U.S. persons and strengthens accountability.
- Privacy-conscious consumers and digital-money skeptics They would support the CBDC ban because it prevents Federal Reserve banks from issuing a digital currency that could be seen as enabling government tracking of transactions. They may also favor the prohibition on direct individual accounts at Federal reserve banks as a guardrail against central-bank retail banking.
- Some national-security hawks who want clearer rules They may support the bill’s requirement that targeting U.S. persons under section 702 be done through a warrant or other court order, because it clarifies when stronger judicial process is required. They could see that as preserving legitimacy for intelligence programs by tightening the rules around Americans.
- Intelligence and law-enforcement officials They may argue the new review layers, criminal penalties, and warrant-related restrictions could slow lawful intelligence work and create hesitation among FBI personnel. Their concern would be that compliance burdens make it harder to use section 702 effectively against foreign threats.
- Federal Reserve and payments-policy supporters They may oppose the CBDC ban because it forecloses a future policy tool for modernizing payments or responding to changes in the financial system. They could argue Congress should preserve flexibility rather than prohibit issuance of a CBDC outright.
- Technology and financial-innovation advocates They may say the bill locks in today’s structure and blocks experimentation with digital public money or related payment infrastructure. From their perspective, the prohibition on issuing a CBDC or substantially similar digital asset could leave the U.S. behind other countries or private-sector developments.
Key Implications
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““The Federal Reserve bank may not… issue a central bank digital currency””
This would bar Federal Reserve banks from creating a CBDC, so any future federal digital dollar issued through the Federal Reserve system would be prohibited under this bill.
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““A requirement that the FBI, on a monthly basis, provides… written statements regarding each United States person query””
The FBI would have to document and transmit every U.S.-person query from the prior month for civil-liberties review, creating a recurring oversight process rather than occasional audits.
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““knowingly and willfully violates the querying procedures… relating to United States person queries””
Deliberate violations of section 702 querying rules by FBI personnel would become a criminal offense, with penalties that can include fines and up to 5 years in prison.
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““no officer or employee… may intentionally target a United States person for an acquisition under section 702””
The bill would prohibit using section 702 to intentionally target Americans, pushing such targeting into the warrant or court-order pathways listed in the same subsection.
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““strike ‘April 30, 2026’ and insert ‘April 30, 2029’””
This extends the expiration date for certain FISA Title VII authorities by three years, keeping those surveillance powers in place until 2029 unless changed again.
Latest Status
June 5, 2026
Motion to proceed to consideration of the House message to accompany S. 1318 rejected in Senate by Yea-Nay Vote. 47 - 52. Record Vote Number: 164.
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Ask AI about this billData sourced from api.congress.gov.