Question funding request

Senate Republicans scramble to salvage CFPB cuts, question funding request in GOP megabill

A top Senate official ruled last week that an initial proposal zero out CFPB funding is ineligible for the legislation.

Jasper Goodman

Senate Banking Committee Republicans are aiming to rework a proposal to cut funding for the Consumer Financial Protection Bureau as part of the GOP’s “big, beautiful bill” after Chair Tim Scott’s initial plan to zero out CFPB funding was deemed ineligible for the legislation.

The push to salvage CFPB language comes as Senate GOP leaders are aiming to put the megabill on the floor in the upper chamber this week. GOP senators said Monday they are hopeful that some form of CFPB funding cut will make it in the final bill. The Senate parliamentarian ruled last week that Scott’s initial proposal to block the CFPB from getting any money from the Federal Reserve — where it currently gets its funding — is ineligible for the filibuster-skirting budget reconciliation process Republicans are using to pass the megabill without Democratic votes.

“Not confirmed yet, but we most certainly think we have a path forward to significantly limit the CFPB and save some money as well,” Sen. Mike Rounds (R-S.D.), a senior member of the Banking panel, told reporters Monday afternoon. “We think we’re there, but we don’t know that we have, necessarily, the parliamentarian’s final word on it yet.”

It remains unclear what such a proposal would look like. The House-passed reconciliation bill cut the amount of funding the CFPB has access to by about 70 percent.

Senate Parliamentarian Elizabeth MacDonough also nixed Scott’s proposals to slash some Federal Reserve employees’ pay, cut Treasury’s Office of Financial Research and dissolve the Public Company Accounting Oversight Board.

Scott said in a statement last week that committee Republicans “remain committed to cutting wasteful spending at the CFPB and will continue working with the Senate parliamentarian on the Committee’s provisions.”

Defense Production Act money concerns: The CFPB language isn’t the only outstanding issue in the Banking Committee’s proposal.

Sen. John Kennedy (R-La.) said Monday he has concerns with language that would authorize $1 billion for the Trump administration to spend under the Defense Production Act.

“It’s basically the Green New Deal scam give away in reverse,” Kennedy said. “I’m very uncomfortable with that.

The Louisiana Republican said the provision would be taking “taxpayer money and giving it to energy companies in the private sector for pipelines, LNG projects, coal plants, critical minerals mining.” He added that he plans to offer an amendment that would require Congress to approve spending on any projects.

“I’m very uncomfortable with the government picking winners and losers because when the government picks winners and losers in the private sector, the government consistently picks losers,” he said.