Senate GOP seeks to cut off funding source for top consumer watchdog

[BumRushDaShow]

Source: The Hill

06/06/25 2:52 PM ET


Senate Republicans are seeking to cut off a key funding source for the Consumer Financial Protection Bureau (CFPB) as part of a mammoth package to advance President Trump’s tax agenda and spending cuts. Republicans on the Senate Banking Committee said the legislative text unveiled Friday would block CFPB’s ability “to fund itself” by significantly limiting its funding structure. Currently, as part of its funding structure, the CFPB receives transfers from the central bank not exceeding a cap set at 12 percent of the Federal Reserve System’s total operating expenses in 2009.

However, the proposal offered by Senate Republicans on Friday would reduce that cap to zero. The measure goes further than the House version of Trump’s “big beautiful bill,” which seeks to reduce the cap to 5 percent. The GOP-led Senate committee said Friday the move would not “affect the Bureau’s existing ability to request funds from Congress” and would result in about $6.4 billion in savings over 10 years.

The CFPB has long faced legal challenges over its funding structure, as Republicans have pushed for the agency to be funded through the annual appropriations process in Congress that many other federal agencies are subject to instead of the Federal Reserve. Some Republicans have said they see the broader tax and spending cuts plan as their best shot to rein in an agency they’ve argued has too much power and independence. The recent text has drawn swift backlash from Democrats on the banking committee, however.

Sen. Elizabeth Warren (Mass.), the top Democrat on the committee, attacked the Republican proposal in statement Friday afternoon, saying it “goes beyond the already extreme House bill and is yet another example of Republicans’ reckless and bloodthirsty pursuit of destroying the CFPB — an agency that has returned over $21 billion to scammed Americans — by any means necessary, after failing to get their way in court.”

Read more: https://thehill.com/business/budget/5337330-republicans-seek-to-cut-cfpb-funding/

[WMDemocract]

1. Republicans never wanted consumer protection

Let’s be blunt: Republicans never wanted consumer protection — they want corporate predators to roam free. This isn’t about “budget cuts.” It’s about neutering the only agency that’s dared to stand between Wall Street and Main Street.

Gutting the CFPB’s funding isn’t fiscal policy — it’s sabotage dressed up in a suit. $21 billion returned to Americans, and that’s what they’re trying to kill? These vampires can’t survive unless we’re too weak to fight back.

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