Senate Republicans are making another go at targeting a key funding source for the Consumer Financial Protection Bureau (CFPB) as part of their massive bill to advance President Trump’s tax agenda and spending cuts.
In text seen by The Hill, Republicans on the Senate Banking Committee are pushing to significantly limit funding the CFPB is able to access. The effort comes after a previous proposal to completely cut off the funding source was rejected by the Senate’s rules referee.
Currently, as part of its funding structure, the CFPB receives transfers from the central bank not exceeding a cap set at 12 percent of the Federal Reserve System’s total operating expenses in 2009.
The previous proposal offered by Senate Republicans sought to reduce that cap to zero and block the CFPB’s ability “to fund itself.” But Republicans revised the proposal after it was rejected by the Senate parliamentarian for violating chamber rules.
In the more recent proposal being floated by Republicans, the cap would be reduced to about 6.5 percent. Punchbowl News first reported the proposal.
The GOP-led committee previously said the original measure to zero out the cap would have resulted in about $6.4 billion in savings over 10 years. It’s unclear how much savings the new proposal would generate.
Republicans have long targeted the consumer watchdog agency, which was created in the wake of the 2008 financial crisis, challenging its funding structure and arguing it should be reined in.
GOP lawmakers have pushed for it to be funded through the annual appropriations process in Congress, which many other federal agencies are subject to, instead of the Federal Reserve.
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