House Subcommittee OKs Cuts to CFPB Budget
June 16, 2011
The House Appropriations Committee financial services subcommittee on Thursday passed appropriations legislation for 2012, which include a reduction in funding for the Consumer Financial Protection Bureau, reports The Hill.
“We really have to make difficult choices if we are going to reduce the Federal government’s unsustainable level of spending,” subcommittee Chairwoman Jo Ann Emerson (R-MO).
The legislation will be considered by the full committee on June 23 and before the House the week of July 11. The $19.9 billion for funding set forth by the bill is almost $2 billion less than last year and $6 billion less than the President’s budget proposal, according to The Hill.
“This is a 9 percent cut from current funding for the agencies in the bill,” the site reports. “It also contains numerous policy riders including one that forbids enforcement of the Obama healthcare reform’s mandate that consumers buy health insurance.”
Instead of being funded by the Federal Reserve, independent of lawmakers, the bill would bring the CFPB’s budget under the authority of appropriators beginning in 2013.
“It would limit the mandatory funds provided to the CFPB to $200 million — less than half of what it can receive currently,” continues The Hill. “The move serves to effectively cap its spending before bringing it under the appropriations process. Under Dodd-Frank, CFPB funding levels are set as a percentage of 2009 Federal Reserve spending. In fiscal 2012, the CFPB expected to receive a maximum of roughly $550 million.”
Click here to read more about the impact the new legislation will have on regulatory agencies.