WASHINGTON–America’s Credit Unions is calling on Russell Vought, director of the Office of Management and Budget, to provide additional information on plans for funding the CFPB in light of the decision not to draw funds from the Federal Reserve, as well as the reduction in the annual funding cap.
America’s Credit Unions said the CFPB’s resources should be targeted at “bad actors” and safeguarding consumers without burdening compliant credit unions.
The letter notes that as part of the recently passed One Big Beautiful Bill Act (OBBA), the CFPB’s annual funding cap will be reduced from a maximum of 12% of the Federal Reserve’s 2009 operating budget (inflation- adjusted) down to 6.5%.
“America’s Credit Unions supports right-sizing the Bureau’s budget to what is needed for its
mandate, and we view this change as generally positive for ensuring the CFPB remains focused on its highest priorities,” the trade group wrote. “We do recognize, however, that a lower funding cap also means the Bureau will need to be even more efficient and selective in how it allocates resources going forward.”
Details Sought
America’s Credit Unions asked Vought to provide additional details around:
- Future funding draws
- Sufficiency of reduced budget and staffing
- The Bureau’s plans for prioritizing its supervisory and enforcement
efforts under the constraints to ensure that core functions (such as
addressing egregious violations, fielding consumer complaints, and safeguarding servicemembers and seniors) are maintained at an effective level. “We are interested in understanding whether the 6.5% budget cap, potentially on the order of $300–400 million annually, will be sufficient to support the Bureau’s critical activities targeting wrongdoing in the marketplace, or if the CFPB foresees needing to seek supplemental funding (for example, via congressional appropriation) to cover any gaps,” the letter states.
