On June 19, the U.S. Senate Committee on the Budget issued an update on the Senate Parliamentarian’s ruling that the provision in HR 1, the “One Big Beautiful Bill Act,” to eliminate all funding the CFPB may request would violate the Senate’s Byrd Rule. According to the Parliamentarian, if Republicans wished to pass such a provision, they would have to do so under the typical bill procedure, which is subject to a filibuster and 60-vote threshold.
As previously covered by InfoBytes, the Senate Banking, Housing, and Urban Affairs Committee released its proposed amendment to HR 1 to include a reduction — from 12 percent to 0 percent — in the amount of funds the CFPB can annually request from the Fed’s inflation-adjusted profits. However, the proposed amendment would not affect the CFPB’s ability to request funds directly from Congress.
Sens. Jeff Merkley (D-OR) and Elizabeth Warren (D-MA) praised the Senate Parliamentarian’s decision to reject the proposal, while Sen. Tim Scott (R-SC) issued the following statement on the ongoing reconciliation discussions with the Parliamentarian: “As it stands now, the Banking Committee’s reconciliation provisions will delay the implementation of Section 1071 of Dodd-Frank, which reduces CFPB spending and protects the privacy and data of small business owners . . . My colleagues and I remain committed to cutting wasteful spending at the CFPB and will continue working with the Senate parliamentarian on the Committee’s provisions.”
The Committee recently released a new proposal to set the CFPB’s funding cap at 6.5 percent, but this amendment will be reviewed by the Senate Parliamentarian before it can be inserted into the reconciliation bill.
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