U.S. House of Representatives Passes Appropriations Bill with CFPB Reforms
7/8/2016 6:40 AM
The bill includes provisions to change the funding and leadership structure of the CFPB.
The U.S. House of Representatives passed the $21.7 billion Financial Services and General Government Appropriations Act late Thursday by a 239-185 party line vote. However the bill reportedly will face a veto threat from President Barack Obama, according to PoliticoPro.
The final bill includes provisions that will bring funding for the Consumer Financial Protection Bureau under the Congressional appropriations process and replace the single director leadership structure with a five-member bipartisan commission.
Additionally, Congressman Blaine Luetkemeyer submitted an amendment addressing the funding of Operation Chokepoint. His amendment reading: “None of the funds made available in this Act may be used to carry out Operation Choke Point” passed.
The bill, which also provides funding for the Internal Revenue Service, Federal Communications Commission, Small Business Administration and General Services Administration, is $1.5 billion less than the current level. IRS funding is cut by $236 million and the FCC is losing $69 million in funding, The Hill reports.
“We also put the Dodd-Frank-created Consumer Financial Protection Bureau under the annual appropriations process so that the people through their representatives retain ultimate control over their government,” House Majority Leader Kevin McCarthy (R-Calif.) said in a statement issued Thursday.
Congress debated the provisions related to the CFPB during the day Wednesday and Thursday, and Republican members prevailed with a 179-243 vote to keep reforms for the CFPB leadership structure and funding in the bill, CQ Roll Call reports.
U.S. Rep. Gwen Moore (D-Wis.) said the CFPB “was intentionally funded by the Federal Reserve rather than being under the political control of Congress,” according to the article.
In addition to the CFPB funding and leadership reforms, the final bill prevents the CFPB from implementing a rule for the payday lending industry.
The House Appropriations Committee approved the bill with the CFPB reforms by a 30-17 vote in June and the House Financial Services and General Government Appropriations Subcommittee approved the bill in May.
The U.S. Senate Appropriations Committee approved its version of the spending bill June 16 with $22.4 billion in funding across several federal agencies. PoliticoPro reported that the Senate version of the bill does not include any policy provisions related to Dodd-Frank regulations including any measures related to the CFPB funding appropriations and leadership structure.
ACA has long advocated for legislation that will make the CFPB a more open and objective government agency, including changing the CFPB structure from a single director to a bi-partisan commission, funding through Congressional appropriations and the creation of a dedicated Inspector General for the CFPB.
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