S.1923 - CFPB Pay Fairness Act of 2025 (119th Congress)
Summary
The CFPB Pay Fairness Act of 2025 aims to amend the Consumer Financial Protection Act of 2010. It seeks to set the rate of pay for employees of the Bureau of Consumer Financial Protection (CFPB) in accordance with the General Schedule used for other federal employees. The bill was introduced in the Senate by Mr. Kennedy and referred to the Committee on Banking, Housing, and Urban Affairs.
Expected Effects
If enacted, this bill would change how CFPB employees are compensated. Instead of a pay scale determined by the CFPB Director, their pay would align with the General Schedule (GS) used for most federal employees. This could lead to changes in employee morale, recruitment, and retention within the CFPB.
Potential Benefits
- Standardized Pay: Ensures CFPB employees are paid according to the same standards as other federal employees, potentially increasing fairness and transparency.
- Potential Cost Savings: Aligning with the General Schedule could lead to cost savings if the CFPB's current pay scale is higher.
- Improved Morale: Some employees may view the General Schedule as more equitable, potentially boosting morale.
- Easier Recruitment: Using a well-known pay scale like the General Schedule could simplify recruitment efforts.
- Increased Accountability: Ties CFPB employee compensation to a standardized system, increasing accountability.
Most Benefited Areas:
Potential Disadvantages
- Potential Pay Cuts: Some CFPB employees may experience pay cuts if their current salaries are higher than what the General Schedule provides.
- Reduced Flexibility: The CFPB Director would have less flexibility in setting pay scales to attract and retain specialized talent.
- Decreased Morale: Employees who perceive the General Schedule as less competitive may experience decreased morale.
- Increased Bureaucracy: Implementing the General Schedule could introduce additional bureaucratic processes.
- Loss of Talent: Some highly skilled employees may leave the CFPB for higher-paying jobs in the private sector.
Constitutional Alignment
This bill appears to be constitutionally permissible. Article I, Section 8 of the Constitution grants Congress the power to create laws necessary and proper for carrying out its enumerated powers, which include regulating commerce and establishing uniform laws. This bill falls under Congress's authority to regulate the compensation of federal employees, including those at the CFPB, which was established to regulate consumer financial products and services.
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).