Sponsors (17)
Shifting CFPB funding to annual appropriations increases Congressional oversight and potential fiscal restraint but risks reduced or unpredictable consumer‑protection enforcement and short‑term disruption to CFPB programs.
Taxpayers and the public: CFPB funding for FY2026–FY2027 will be set through annual appropriations, increasing Congressional budgetary oversight and giving lawmakers more ability to constrain open-ended off‑budget commitments.
Consumers (especially borrowers and victims of predatory practices): CFPB may receive lower or less predictable funding if Congress reduces appropriations, which could weaken enforcement, supervision, and consumer‑protection activities.
Financial institutions, consumer‑serving organizations, and consumers: Short‑term uncertainty during the transition to annual appropriations could delay CFPB programs, grants, or enforcement actions, disrupting ongoing initiatives.
Based on analysis of 3 sections of legislative text.
Renames the CFPB to the Consumer Financial Empowerment Agency, makes it a presidentially appointed independent agency, and shifts its funding to annual appropriations for FY2026–FY2027.
Introduced January 23, 2025 by Garland H. Barr · Last progress January 23, 2025
Renames the Bureau of Consumer Financial Protection to the Consumer Financial Empowerment Agency, changes its legal status from an independent bureau inside the Federal Reserve System to a standalone independent agency whose leaders are appointed by the President, and updates dozens of statutory references to reflect the new name. It also removes the bureau’s prior automatic funding arrangements and moves the agency into the regular appropriations process by authorizing “such sums as may be necessary” for fiscal years 2026 and 2027. The bill mainly rewrites statutory names, definitions, and cross-references across federal consumer finance laws and changes how the agency is governed and paid. That alters the agency’s institutional independence, budget process, and legal identity, while keeping its existing roles in consumer financial protection but subjecting it to annual appropriations oversight (at least for FY2026–FY2027).