Sponsors (7)
The bill eases regulatory and enforcement burdens for lenders—benefiting financial firms and some small creditors and modestly cutting government enforcement costs—while weakening centralized consumer protections and oversight, increasing financial risk for vulnerable households and creating legal uncertainty.
Banks and other financial institutions would face fewer CFPB compliance requirements, lowering their regulatory and compliance costs.
Small lenders and credit providers would confront a simpler, less overlapping federal regulatory landscape, reducing administrative burdens for small-business owners and community lenders.
Taxpayers could see modest reductions in federal enforcement and supervision spending tied to the CFPB.
Consumers—especially low-income and middle-class households—would lose CFPB protections against abusive or unfair lending practices, leaving them more exposed and with weaker enforcement remedies.
Loss of centralized consumer‑finance supervision would reduce oversight of complex products (payday loans, debt collection, mortgage servicing), increasing financial risk for vulnerable consumers.
Restoring the prior regulatory regime could create legal uncertainty and prompt litigation over which pre‑2010 provisions apply, producing transitional legal costs for firms and consumers.
Based on analysis of 2 sections of legislative text.
Repeals the Consumer Financial Protection Act of 2010 and restores pre-2010 law, eliminating the CFPB's statutory foundation.
Repeals the Consumer Financial Protection Act of 2010 and restores prior law as if the 2010 Act had never been enacted. The bill would eliminate the statutory basis for the Consumer Financial Protection Bureau (CFPB) and revive statutes that were amended or repealed by the 2010 law.
Official title: To eliminate the Bureau of Consumer Financial Protection.
Introduced February 26, 2025 by Byron Donalds · Last progress February 26, 2025