This legislation, titled the "Federal Home Loan Banks' Mission Activities Act," seeks to strengthen the Federal Home Loan Bank System's (FHLB) role in addressing critical community needs. Its primary purpose is to improve FHLB participation in financing for housing, including affordable housing, agricultural, small business lending, and community economic development across various communities, including rural, urban, low-income, and Tribal areas. Key provisions include expanding the definition of community financial institutions to encompass credit unions and certified community development financial institutions (CDFIs), thereby broadening access to FHLB support. The bill also clarifies that FHLBs can engage in a wider range of activities, such as providing grants, subsidized financing, and credit enhancement, to support their members' housing and community development efforts. A significant change is made to the Affordable Housing Program (AHP) , allowing FHLBs to offer grants in addition to subsidized advances. Starting in 2025, the annual contribution to the AHP will increase to 30 percent of the preceding year's net income , with a minimum aggregate contribution of $200,000,000. Furthermore, FHLBs can allocate up to 15 percent of this contribution for non-competitive grants or investments outside the main AHP, targeting affordable housing and community economic needs. The bill also mandates that executive compensation for FHLB officers be aligned with mission achievements. The Director must consider the level of mission investments , such as the percentage of members utilizing community investment programs and the share of advances provided to community financial institutions, when setting compensation. Finally, it requires annual reporting to Congress on collateral pledged to the FHLBs, providing transparency on their financial operations.