Key facts
- House Republicans have introduced a bill (H.R. 10184) to reform the Consumer Financial Protection Bureau (CFPB).
- The proposed reforms would shift CFPB funding from the Federal Reserve to the regular congressional appropriations process.
- A dedicated inspector general would be appointed to enhance oversight of the bureau.
- The bill mandates periodic reviews of major CFPB rules to assess their practical impact and cost-benefit justification.
- The legislation aims to reduce duplicative examinations and strengthen due process for regulated entities.
Republicans in the House of Representatives have unveiled a legislative package designed to overhaul the Consumer Financial Protection Bureau (CFPB), focusing on its funding, review processes, and supervision.
The bill, H.R. 10184, introduced by Financial Institutions Subcommittee Chairman Andy Barr (R-Ky.) and House Committee on Financial Services Chairman French Hill (R-Ark.), proposes to subject the CFPB to the standard congressional appropriations process. This would replace its current funding mechanism, which draws from the Federal Reserve, and would also establish a dedicated inspector general to bolster oversight.
Proponents of the bill argue that the CFPB has operated without sufficient accountability, citing a White House study suggesting the agency has cost consumers approximately $370 billion since 2011. Barr stated that the reforms are intended to bring the agency under congressional appropriations and restore accountability.
The proposed legislation also includes provisions for considering the impact of CFPB regulations on small businesses, competition, credit access, and innovation. It mandates periodic reviews of significant rules to ensure their ongoing effectiveness and that their benefits continue to outweigh their costs. Furthermore, the bill aims to reduce duplicative examinations by implementing guardrails for supervision, focusing federal oversight on demonstrated consumer risks, and strengthening due process protections.
This move by House Republicans follows previous attempts to alter the CFPB's structure and funding. In June, Senate Democrats introduced legislation to ensure automatic and full funding for the bureau, aiming to protect it from political interference. The Trump administration had also previously challenged the legality of the CFPB's funding structure, though a federal judge rejected that interpretation.