H.R.814 - Defund the CFPB Act (119th Congress)
Summary
H.R.814, the "Defund the CFPB Act," seeks to amend the Consumer Financial Protection Act of 2010 by limiting the Bureau of Consumer Financial Protection's (CFPB) funding to $0. This bill was introduced in the House of Representatives on January 28, 2025, and referred to the Committee on Financial Services. The bill aims to eliminate the CFPB's ability to request funds for its activities.
Expected Effects
If enacted, the CFPB would be unable to operate due to lack of funding. This would effectively dismantle the agency and its consumer protection activities. The absence of the CFPB could lead to reduced oversight of financial institutions.
Potential Benefits
- Reduced government spending, potentially leading to lower taxes or a reduced national debt.
- Elimination of regulatory burden on financial institutions, potentially fostering innovation and competition.
- Increased autonomy for individuals and businesses in financial decision-making.
- Prevention of potential overreach or abuse of power by the CFPB.
- Alignment with free-market principles by reducing government intervention in the financial sector.
Most Benefited Areas:
Potential Disadvantages
- Reduced consumer protection against predatory financial practices.
- Increased risk of financial fraud and abuse targeting vulnerable populations.
- Weakened enforcement of consumer financial laws and regulations.
- Potential destabilization of the financial system due to lack of oversight.
- Loss of a dedicated agency for addressing consumer complaints and resolving disputes with financial institutions.
Most Disadvantaged Areas:
Constitutional Alignment
The bill's constitutional alignment is complex. Article I, Section 8 grants Congress the power to regulate commerce, which could be interpreted to include consumer financial protection. However, the extent of this power and the appropriateness of delegating it to an agency like the CFPB are subjects of debate. The bill does not appear to infringe on any specific individual rights outlined in the Bill of Rights.
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).