WASHINGTON—Efforts in Congress to reduce funding for the CFPB and other federal agencies that provide oversight have hit a wall after the Senate parliamentarian said the provisions run afoul of the Byrd Rule and will need to be removed before the so-called “big, beautiful bill” can move forward.
The Byrd Rule was established in the Senate as part of the Congressional Budget Act as a mechanism to prevent non-budgetary provisions from being included in reconciliation bills and is meant to ensure reconciliation remains focused on fiscal issues
Senate Parliamentarian Elizabeth MacDonough ruled that several key pieces of the massive bill must go, including a provision that would have placed a funding cap on the CFPB) and which would have cut $6.4 billion by reducing its maximum funding to zero percent of the Federal Reserve’s operating expenses.
In short, it would have eliminated the CFPB, which is currently operating on a bare bones basis.
Other Cuts Ruled Out
MacDonough also ruled against language cutting $1.4 billion in costs by reducing the pay of Federal Reserve staff, cutting $293 million by reducing the Office of Financial Research funding, and cutting $771 million by eliminating the Public Company Accounting Oversight Board.
She also ruled against several other proposed funding reductions.
While Democrats in Congress hailed the ruling, if Republicans want the provisions to remain, they will need 60 votes. They currently hold a 53-47 advantage in the Senate.
