House Panel Approves Major CFPB Restructuring Bill
A House committee has advanced legislation that would end the CFPB's direct funding from the Federal Reserve, though the bill faces long odds in the Senate.
The House Financial Services Committee has approved H.R. 10184, the Consumer Financial Protection Accountability and Reform Act, on a party-line 28-21 vote. The legislation’s most significant provision would subject the Consumer Financial Protection Bureau (CFPB) to the annual congressional appropriations process, ending its current funding structure through the Federal Reserve. The bill also seeks to impose new rulemaking requirements, including defining the term “abusive,” alter the agency’s supervisory and enforcement powers, and clarify the legal weight of its published guidance.
Shifting the CFPB to congressional appropriations would substantially increase political control over the agency’s budget and priorities, a move proponents argue enhances accountability. Opponents counter that it would undermine the bureau's independence and weaken its ability to protect consumers. For financial institutions, this legislative effort signals a persistent political drive to curtail the CFPB’s authority, which could reshape the regulatory and enforcement landscape. The bill now proceeds to other committees, but with few legislative days remaining and a requirement for 60 votes in the Senate, its enactment in the current session is considered highly unlikely. Counsel should monitor its progress as an indicator of future reform efforts.