Sponsors (7)
The bill reduces federal spending and regulatory burdens for some firms by eliminating CFPB funding, but does so at the cost of weakened consumer protections, greater systemic financial risk, and likely shifted costs and delays for taxpayers and consumers.
Federal taxpayers would face lower direct federal spending obligations because the CFPB's statutory funding authorization is capped at $0, reducing the agency's budgetary footprint.
Some financial firms would face reduced regulatory and compliance costs because limiting CFPB resources is likely to reduce the volume or aggressiveness of certain enforcement and supervisory actions.
Consumers — especially low-income individuals and middle-class families — would lose an active federal regulator, resulting in reduced oversight, fewer enforcement actions, and less restitution for predatory or unlawful financial practices.
Financial markets and ordinary Americans could face higher systemic risk if CFPB supervisory and rulemaking activities are curtailed, potentially increasing vulnerability to consumer-finance shocks.
Eliminating CFPB funding would shift enforcement and consumer-protection responsibilities to other agencies and the courts, likely increasing costs for taxpayers, prolonging consumer relief, and creating administrative inefficiencies.
Based on analysis of 2 sections of legislative text.
Introduced January 29, 2025 by Rafael Edward Cruz · Last progress January 29, 2025
Amends the Consumer Financial Protection Act to cap the Consumer Financial Protection Bureau's statutory funding at $0 by replacing the current funding-determination language with a limit of "not more than $0" and removing related paragraphs. The change would strip the Bureau of its statutory authorization to receive funding under 12 U.S.C. § 5497(a). The text does not specify an effective date or provide replacement funding or transition steps; practical and legal effects would depend on how other funding mechanisms and courts treat the change.