CFPB Funding Appropriations on the Table in White House 2020 Budget
The proposal would switch the bureau’s funding model from an independent budget requested from the Federal Reserve to one approved by Congress.
3/12/2019 1:00 PM
President Donald Trump's 2020 budget proposal seeks to require congressional approval for the Consumer Financial Protection Bureau funding on an annual basis.
“Republican lawmakers have sought to reform the CFPB’s funding every year since the bureau was created, in 2011, by proposing to add the agency to congressional appropriations,” American Banker reports. “The president’s budget proposes much of the same. Yet it is unlikely that Congress — particularly the Democratic-controlled House — would enact such a measure.”
The budget proposal also seeks congressional appropriations for the Financial Stability Oversight Council and Office of Financial Research.
“The budget proposes legislation to restructure the CFPB. Restructuring is required to ensure appropriate congressional oversight and to refocus CFPB's efforts on enforcing the law,” the budget stated, according to American Banker. “The budget proposes to limit CFPB's mandatory funding in 2019 to allow for an efficient transition period and bring a newly streamlined agency into the regular discretionary appropriations process beginning in 2020.”
The article notes that CFPB Director Kathy Kraninger proposed budget cuts for the bureau in her budget released in February. The Trump administration’s budget includes $636 million in CFPB funding in 2019 compared to the $533 million estimated by Kraninger.
ACA International has previously supported legislation that would bring the CFPB’s budget under the congressional appropriations process as well as change its leadership structure to a bipartisan commission.
Read more on the 2020 budget proposal from American Banker.
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