Sponsors (6)
Cutting the CFPB's statutory funding would modestly lower federal spending and reduce regulatory costs for financial firms but would substantially weaken federal consumer protections, enforcement capacity, and oversight—raising risks for borrowers, the financial system, and taxpayers.
Taxpayers would see reduced federal spending because the CFPB would no longer receive its annual statutory funding.
Banks, credit unions, fintech firms, and other financial firms would likely face lower regulatory and compliance burdens and costs without CFPB oversight.
Some lenders and financial-service providers could gain greater flexibility to innovate or offer products that might be restricted under stricter CFPB rules.
Consumers would lose an independent federal regulator (the CFPB), reducing enforcement of rules against unfair banking and lending practices.
Low-income borrowers and other victims of predatory lending and fraud would have fewer enforcement and complaint resources available.
Financial regulators, markets, and taxpayers could face greater systemic risk from weaker oversight of banks, lenders, and nonbank financial firms.
Based on analysis of 2 sections of legislative text.
Introduced January 28, 2025 by Keith Self · Last progress January 28, 2025
Caps the Consumer Financial Protection Bureau's (CFPB) annual funding at $0 by amending the federal statute that currently provides the Bureau with a funding stream. The bill replaces the existing funding formula language with a statutory limit of "not more than $0," removes related paragraphs, and renumbers remaining text. This change would eliminate the CFPB's statutory funding mechanism and, unless replaced or sustained by other means, could stop or sharply reduce the agency's normal operations, enforcement actions, rulemaking, and consumer assistance activities. It also raises legal and operational uncertainty about how long the Bureau could continue to function using any existing balances or alternate funding sources, and it could prompt litigation or administrative challenges.