House seeks permanent ban on Fed issuing CBDC in housing bill

Republican lawmakers in the U.S. House of Representatives are pushing to permanently ban the Federal Reserve from issuing a central bank digital currency (CBDC) as part of a major housing bill scheduled for a vote this week. The move would escalate a temporary restriction proposed by the Senate into an indefinite prohibition.

The underlying legislation, the 21st Century ROAD to Housing Act, is primarily focused on housing supply and affordability reforms. A version passed by the Senate in March included a provision barring the Federal Reserve System from issuing a CBDC, but only until December 31, 2030. The House amendment seeks to remove that expiration date entirely.

Representative Mike Flood, who helped craft the House version, stated the change reverses what he described as a "backdoor green light" for a digital dollar. A key supporter, Representative Warren Davidson, argued the 2030 sunset would function as a "pre-launch development period" for a government-issued currency. He criticized the approach, stating the House could deliver a bipartisan win on housing but is instead planning to "deliver a go-live date for Central Bank Digital Currency, using housing as the Trojan...