House GOP Attempts to Slash CFPB Funding

An appropriations bill released last week by House Republicans would cut financial services agencies’ funding in 2012, including a cap on the Consumer Financial Protection Bureau that would limit its funding to $200 million.

The bill, released by the House Committee on Appropriations, includes funding for several agencies including the Department of the Treasury, Securities and Exchange Commission, Internal Revenue Service, Small Business Administration and CFPB, with a proposed $19.9 billion in funding for fiscal year 2012. This funding falls short of fiscal year 2011 funding by $2 billion, and is 23% less than the Obama Administration requested.

Regarding the CFPB funding, the committee said, “This new agency created by the Dodd-Frank legislation has not yet been fully constituted and many questions remain as to its authority and mission. The bill also includes language that will subject the [agency] to annual appropriations starting in 2013, thus increasing annual oversight and making the agency more transparent and accountable to the taxpayer.”

The agency, scheduled to take effect on July 21, still remains without a director, pending a nomination by President Obama and a confirmation by the Senate. While White House Special Advisor Elizabeth Warren, who is tasked with setting up the new bureau, has become a widespread topic of discussion and debate as a potential nominee, House Republicans have made strong efforts to block her nomination. Recent reports point to another potential leader within the Bureau: Raj Date, who currently serves as CFPB associate director for research, markets and regulation.

Written by Elizabeth Ecker

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