H.R. 9877 (IH) – CFPB Budget Integrity Act
Bill Sponsor: Representative Barry Loudermilk (R-GA)
Bill Status: Introduced on May 12, 2022; referred to the House Committee on Financial Services
Purpose: To prohibit the Consumer Financial Protection Bureau (CFPB) from using funds from the Federal Reserve System (Fed) to operate.
Summary:
H.R. 9877 would amend the Dodd-Frank Wall Street Reform and Consumer Protection Act to require the CFPB to be funded through the annual appropriations process, rather than the Fed. Currently, the CFPB is funded through the “Consumer Financial Protection Fund,” which is funded by the Fed.
The bill’s supporters argue that this change would make the CFPB more accountable to Congress and increase transparency in its operations. They also argue that the CFPB has overstepped its authority and that its funding should be reduced.
Opponents of the bill argue that it would weaken the CFPB and make it more difficult for the agency to protect consumers. They also argue that the Fed’s funding provides the CFPB with insulation from political interference.
Key Provisions:
- Prohibits the CFPB from receiving any funds from the Fed.
- Requires the CFPB to be funded through the annual appropriations process.
- Limits the CFPB’s budget to the amount appropriated by Congress.
- Repeals the provision in Dodd-Frank that allows the Fed to transfer funds to the CFPB.
Current Status:
The bill was introduced on May 12, 2022, and referred to the House Committee on Financial Services. No further action has been taken on the bill at this time.
Outlook:
The bill is unlikely to pass in its current form. The Biden administration has expressed opposition to the bill, and it faces significant opposition from Democrats in Congress. However, the bill could gain traction if there is a change in political control of Congress in the upcoming midterm elections.
H.R. 9877 (IH) – CFPB Budget Integrity Act
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