H.R.3141 - CFPB Budget Integrity Act (119th Congress)
Summary
H.R.3141, the CFPB Budget Integrity Act, seeks to limit the unobligated balances of the Bureau of Consumer Financial Protection (CFPB). It amends the Consumer Financial Protection Act of 2010 to cap the CFPB's unobligated balances at 5% of its total funding. Any excess funds would be transferred to the general fund of the Treasury.
The bill also requires the CFPB to include a description of the use of any unobligated balances in its regular reports.
The bill is sponsored by Mr. Downing, Mr. Meuser, Mr. Ogles, and Mr. Sessions and was introduced in the House of Representatives on May 1, 2025, before being referred to the Committee on Financial Services.
Expected Effects
The primary effect of this bill, if enacted, would be to restrict the CFPB's ability to accumulate large reserves of unspent funds.
This could lead to more efficient use of allocated funds or potentially hinder the CFPB's ability to respond quickly to emerging consumer financial issues. The transfer of excess funds to the Treasury could reduce the CFPB's operational flexibility.
Potential Benefits
- Potentially reduces wasteful spending by the CFPB.
- Increases transparency in the CFPB's use of funds.
- Could lead to more efficient allocation of resources within the government.
- May provide additional funds for other government programs through the Treasury.
- Addresses concerns about the CFPB's financial autonomy.
Most Benefited Areas:
Potential Disadvantages
- May limit the CFPB's ability to respond to unforeseen financial crises or emerging consumer threats.
- Could hinder the CFPB's long-term planning and investment in consumer protection initiatives.
- May increase political pressure on the CFPB's budget and operations.
- Potentially weakens the CFPB's independence and effectiveness.
- Could lead to underfunding of critical consumer protection programs.
Constitutional Alignment
The bill appears to align with Congress's power of the purse, as outlined in Article I, Section 9, Clause 7 of the Constitution, which states that "No Money shall be drawn from the Treasury, but in Consequence of Appropriations made by Law". This clause grants Congress the authority to control federal spending and ensure accountability in the use of public funds.
By limiting the CFPB's unobligated balances and requiring the transfer of excess funds to the Treasury, the bill seeks to exercise greater congressional oversight over the CFPB's budget. However, some may argue that it infringes upon the CFPB's independence, potentially conflicting with the intent of the Dodd-Frank Act, which established the CFPB with a degree of autonomy to protect consumers.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).