CFPB structure, CDFI funding, and marijuana banking addressed in new appropriations bill

If you thought the Supreme Court laying down the law and declaring the Consumer Financial Protection Bureau’s (CFPB) funding method constitutional would be the end to a very, very, very long fight against the CFPB, guess again. Despite the Supreme Court’s ruling (which, in turn, labeled many controversial CFPB rules, such as the recent credit card late fee cap, as constitutional), House Republicans are continuing the fight through alternative methods.

Last week, the House Financial Services Appropriations Committee passed the FY25 Financial Services and General Government Appropriations Bill, which outlined a new organizational structure and funding mechanism for the CFPB that also holds the CFPB to the same appropriations clause as other government organizations and prevents it (very specifically) from using funds to cap credit card late fees.

Furthermore, it also reduced the CFPB’s budget to $650 million which is “$35 million below the authorized level and $54 million below the Federal Reserve transfer received through the third quarter of FY24.” The changes laid out for the organization are listed below:

  • Replaces the unaccountable CFPB Director with a bipartisan, five-person commission.

 

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