Groups Urge Conferees to Reject Fed Dividend, G-Fee Provisions

ABA and more than two dozen trade groups urged the House and Senate conferees on the highway spending bill to adopt the House’s approach to funding the legislation.

The House bill, adopted last week, uses the Federal Reserve’s capital surplus account to pay for highway spending. By contrast, the Senate’s bill, passed in July, includes a substantial cut to the dividends paid on the Federal Reserve Bank stock that national banks and other Fed member banks are required to hold. It also includes an extension of higher guarantee fees.

A conference is now working out the differences between the two bills. ABA has advocated vigorously against the Fed dividend cut and g-fee extension and is hopeful the House’s funding position will prevail.