Legislation introduced to cut CFPB funding aims for swift passage

Congressman Keith Self has put forward a bill aimed at reducing the Consumer Financial Protection Bureau's (CFPB) funding to zero, effectively seeking to eliminate the agency by cutting off its financial resources. This move aligns with the Byrd Rule in the Senate, making it eligible for inclusion in a budget reconciliation package that requires only a simple majority vote.

Senator Ted Cruz is leading similar efforts in the Senate, highlighting support from conservatives who aim to hold federal agencies accountable. Congressman Self stated, "The CFPB has long operated as an unaccountable and burdensome agency that has stifled economic growth through regulatory overreach." He added that eliminating its funding would promote transparency and accountability while returning power to American citizens and their representatives.

Established in 2010 under the Dodd-Frank Act, the CFPB currently receives funding directly from the Federal Reserve, bypassing Congressional oversight. The proposed legislation seeks to end this practice by setting a statutory funding cap of zero, requiring future appropriations from Congress for continued operations.

Senator Cruz commented on the matter: “The CFPB is an unelected, unaccountable bureaucratic agency that has imposed burdensome and harmful regulations on American businesses, banks, and credit unions." He argued that passing this legislation would save taxpayers billions and urged prompt Senate action.

The bill's compliance with the Byrd Rule allows it to be considered through budget reconciliation, avoiding the usual 60-vote threshold in the Senate. Congressman Self emphasized that "Congress must ensure our government operates within the bounds of the Constitution," expressing pride in collaborating with Senator Cruz on this initiative.

Support for this legislation is strong among House and Senate Republicans, who view it as part of broader efforts to reduce wasteful spending and limit federal overreach.