In June 2025, the Senate Banking Committee introduced a version of the “One Big, Beautiful Bill” that would eliminate the CFPB’s Federal Reserve funding.
The CFPB can currently receive funds of up to 12% of the Federal Reserve’s 2009 profits. The House Financial Services Committee already introduced a version of the bill that would cap the CFPB’s Federal Reserve funding at 5% of the Federal Reserve’s 2009 profits. The CFPB has historically relied on the Federal Reserve for the entirety of its funding and reducing the funding to 0% will require the CFPB to rely on Congress for appropriations. Senate Banking Committee Chairman Tim Scott’s staff have indicated that eliminating the CFPB’s Federal Reserve funding would save $6.36 billion. This proposed legislation re-centers a long-standing legal dispute whether the CFPB’s funding source was unconstitutional because the funding came from the Federal Reserve, not Congress. In 2024, the Supreme Court ruled in the CFPB’s favor, upholding the CFPB’s Federal Reserve funding structure.
This proposed legislation comes amidst a slew of recent changes to the CFPB’s regulatory authority and shifting priorities within the CFPB. Consumer financial services clients should continue to monitor this actively evolving regulatory landscape.
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