Budget proposal also seeks to reduce bureau’s workforce.
2/12/2020 9:00
The use of congressional appropriations for the agency regulating the accounts receivable management industry resurfaced in the White House budget proposed this week.
This is not a new proposal for funding the Consumer Financial Protection Bureau by any means as the puzzle pieces representing oversight of the bureau, its leadership structure and budget continue to move on Capitol Hill and in the courts.
But, American Banker reports (a subscription may be necessary to access this article), President Donald Trump’s administration is seeking to move the CFPB’s funding from the Federal Reserve to congressional appropriations beginning in 2022.
Under the budget proposal, the Fed’s transfers to the CFPB would decline by $110 million starting in 2021 before the switch to congressional appropriations, if approved.
But it’s likely the Democratic-majority House would nix the proposal, which has been a focus for Republican legislators for some time, according to American Banker.
If the budget proposal moves forward, the CFPB could also see staff cuts of approximately 200 full-time equivalent positions—or 11.6%, according to the article.
The budget proposal, like last year’s, also seeks congressional appropriations for the Financial Stability Oversight Council and Office of Financial Research.