Following a U.S. Senate Committee on Banking, Housing, and Urban Affairs hearing with Consumer Financial Protection Bureau (CFPB) Director Rohit Chopra, Ranking Member Tim Scott (R-S.C.) joined Senator Bill Hagerty (R-Tenn.) and his Banking Committee colleagues in introducing the Consumer Financial Protection Bureau (CFPB) Accountability Act. This legislation aims to require that the CFPB's funding be annually appropriated by Congress. Currently, the Federal Reserve provides whatever funding the CFPB requests within certain limits, allowing the agency to avoid fiscal accountability.
The bill is co-sponsored by Senators Mike Crapo (R-Idaho), Mike Rounds (R-S.D.), Thom Tillis (R-N.C.), John Kennedy (R-La.), Cynthia Lummis (R-Wyo.), Katie Britt (R-Ala.), Kevin Cramer (R-N.D.), and Steve Daines (R-Mont.).
“Under Director Chopra, the CFPB continues to brush aside congressional concerns, forge ahead with political agendas, and push past the boundaries of its authority – all to the detriment of the consumers it’s supposed to protect. By subjecting the CFPB to the congressional appropriations process, this legislation will increase accountability and help Congress ensure the agency stays true to its mission,” said Ranking Member Scott.
Senator Hagerty stated, “The CFPB must be required to go through the regular congressional appropriations process to ensure public accountability.” He added that while protecting consumers in the financial marketplace is important, it is unacceptable for an agency with significant regulatory power not to be accountable to elected representatives.
Senator Tillis remarked, “The government bureaucrats who created the CFPB continually sought to remove the agency from meaningful oversight and provide it with preferential treatment.” He emphasized that this legislation aims at reigning in exorbitant pay at the CFPB and restoring parity among federal agencies.
“The bureaucratic state is always trying to grab more power and minimize its accountability,” noted Senator Kennedy. He pointed out that since CFPB bureaucrats do not rely on Congress for funding, they lack accountability to American taxpayers in key ways.
Senator Lummis commented on President Biden’s administration creating a bloated government that necessitates increased accountability. She asserted that subjecting CFPB to appropriations would ensure it serves American people effectively.
Senator Britt expressed concern over what she perceives as partisan actions by a rogue regulator operating without proper congressional mandate or accountability. She advocated for legislative measures ensuring greater oversight.
Senator Cramer highlighted that because CFPB operates as a single-director agency not subject to regular appropriations like other federal agencies, it lacks sufficient congressional oversight. He supported increased oversight through legislative means.
BACKGROUND: The Consumer Financial Protection Bureau Accountability Act builds on Ranking Member Scott’s ongoing efforts aimed at increasing transparency and consumer protection. Recently at a Senate Banking Committee hearing regarding CFPB's semi-annual report, Scott challenged Director Chopra on various issues including enforcement powers and policy-driven rulemaking.
In April 2023, Scott led eight Republicans in criticizing attempts by Chopra's agency targeting incentives promoting financial responsibility which could affect credit availability negatively for consumers. During a June 2023 committee hearing addressing mischaracterized fees termed "junk fees," he opposed broad initiatives lumping legitimate fees under negative labels promoted by political campaigns rather than sound policy considerations.
Following May’s U.S. Supreme Court ruling on CFPP's funding structure being deemed constitutional but still controversial politically; Scott reiterated his commitment towards holding Bureau accountable against perceived abuses driven by politics instead of genuine policy needs.
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