The latest federal budget put forward by House Republicans would slash funding for the fledgling Consumer Financial Protection Bureau in its inaugural year, according to the Huffington Post.
The plan limits the CFPB’s annual budget to $80 million. The bureau had hoped to have $143 million in order to hire staff and execute new initiatives. The site reported that Rep. Rush Holt (D-N.J.) introduced Thursday an amendment to restore $63 million to the CFPB, but the proposal did not pass by a vote of 163-265.
“The Republican attack on the CFPB’s funding would only apply to this year, but would make launching the new agency very difficult, and send a very aggressive signal about Congress’ intent to follow through on the bill it passed in July,” reported the Huffington Post. “Regulations cannot be enforced if regulators do not have the budget to hire staff.”
No House Republicans voted for the Dodd-Frank bill that created the CFPB. Groundwork for the bureau is currently being headed up by special Treasury Department advisor and consumer advocate, Elizabeth Warren.
“My first choice is a strong consumer agency,” Warren said in an interview with the Huffington Post last year. “My second choice is no agency at all and plenty of blood and teeth left on the floor.”
Earlier this year, House Financial Services Committee Chairman Rep. Spencer Bachus, (R-Ala.) that “we’ll go piece by piece-provision by provision” through the Dodd-Frank. (More details)
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