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2mo ago

Senate to Vote on Cutting CFPB Funding Cap to 6.5% of Fed Earnings

Republican senators have secured a simple-majority procedure to include the cut in President Trump’s tax and spending package.

Visitors to the U.S. Capitol rest in the shade on Capitol Hill in Washington, D.C., U.S., June 25, 2025. REUTERS/Nathan Howard/File Photo
FILE - A security officer works inside of the Consumer Financial Protection Bureau (CFPB) building headquarters, Feb. 10, 2025, in Washington. (AP Photo/Jacquelyn Martin, File)
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Senate Banking Committee Chair Tim Scott arrives for a hearing in the Hart Senate Office Building on Capitol Hill on February 11, 2025, in Washington, D.C.

Overview

  • Senate parliamentarian Elizabeth MacDonough ruled the 6.5% cap proposal is eligible for approval by simple majority after rejecting a zero-funding plan last week.
  • The measure would lower the bureau’s funding limit from 12% to 6.5% of Federal Reserve earnings, a reduction that could shrink its workforce and curtail enforcement powers.
  • Republicans aim to attach the funding cut to a sweeping tax and spending bill designed to advance President Trump’s fiscal agenda and reduce federal outlays.
  • Democrats point to the CFPB’s track record of returning over $20 billion to consumers and warn the cut will undermine protections against predatory financial practices.
  • Senator Elizabeth Warren, the top Banking Committee Democrat, plans to introduce a motion to eliminate the proposed cap reduction and restore full funding.