Consumer Financial Protection Bureau May See Significant Budget Slashes

The latest proposed spending cuts from Republicans in the House of Representatives would severely limit funding to the newly created Consumer Financial Protection Bureau, despite this technically being impossible, according to a report from CBS Moneywatch. The latest budget would limit the CFPB’s funds to no more than $80 million, as opposed to the roughly $143 million that was originally intended.

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However, reigning in funding for the CFPB was outlawed by the Dodd-Frank Act, the report said. So lawmakers propose to limit the additional $63 million in funds by ordering the Federal Reserve Board to only transfer $80 million at most initially, which would make it difficult for the CFPB to commence hiring and enforce regulations. The GOP-run House Appropriations Committee thinks it should have regulatory control over the CFPB because it receives funding from taxpayer money.

The GOP is currently on a large-scale campaign to reduce government spending, having had its cachet bolstered by seizing control of the House of Representatives in last November’s elections. They are particularly targeting Democratic pet projects, including the Obama-backed CFPB, which would serve to increase regulations for the financial industry.