BANKING DEMOCRATS INTRODUCE BILL TO AUTOMATICALLY AND FULLY FUND THE CFPB AMIDST ONGOING TRUMP ATTACKS ON CONSUMERS

The following information was released by the U.S. Senate Committee on Banking, Housing, and Urban Affairs:

Today, all eleven Democrats on the Banking Committee introduced a bill to automatically and fully fund the Consumer Financial Protection Bureau (CFPB), the agency that has returned $21 billion directly to Americans who have been scammed by big banks or giant corporations.

The bill requires mandatory transfers to the CFPB of at least 12% of the total operating expenses of the Federal Reserve, up to the amount under the Dodd-Frank Act "reasonably necessary to carry out the authorities of the Bureau under Federal consumer financial law."

Ranking Member Elizabeth Warren led her Committee colleagues in introducing this bill, including Senators Jack Reed (D-RI), Mark Warner (D-VA), Chris Van Hollen (D-Mary.), Catherine Cortez Masto (D-NV), Tina Smith (D-Minn.), Raphael Warnock (D-GA), Andy Kim (D-NJ), Ruben Gallego (D-Ariz.), Lisa Blunt Rochester (D-DE), and Angela Alsobrooks (D-Mary.).

"Donald Trump and his Administration launched an assault on the Consumer Financial Protection Bureau, trying to drain it of its resources so it could no longer stop big banks and giant corporations from scamming Americans out of their money," said Ranking Member Warren. "Democrats are united in fully funding the CFPB when we take back Congress."

The bill is endorsed by the National Consumer Law Center (on behalf of its low-income clients), the Consumer Federation of America, Americans for Financial Reform, Protect Borrowers, the National Community Reinvestment Coalition, and the Center for Responsible Lending.

"The cost of living has skyrocketed, and in the face of growing risks from predatory payday lending apps and crypto scams, this Administration is actively gutting the Consumer Financial Protection Bureau,"said Alys Cohen, director of federal housing advocacy and acting co-director of federal advocacy at the National Consumer Law Center. "Congress should swiftly approve Senator Warren's bill to restore the CFPB's funding, a critical step toward getting Washington's only agency dedicated to protecting consumers back to work."

"By locking in a 12 percent funding floor and making disbursements mandatory," said Adam Rust, director of financial services for the Consumer Federation of America, "this bill ensures that invented legal theories cannot sideline the CFPB from protecting people from financial predators. The CFPB's record speaks for itself. Every dollar the Fed has sent to the CFPB has been returned many times over to consumers through direct remedies and avoided harms."

"Restoring CFPB funding for robust consumer financial protections is a first step to rein in Wall Street, big banks, and predatory lenders who have been emboldened by this administration to fleece people. This bill would help put our financial markets back in order after more than a year of skyrocketing junk fees, the explosion of scams and fraud, and unrestrained financial surveillance," said Tom Feltner, Associate Director of Consumer Policy at Americans for Financial Reform. "Congress has the power to side with everyday people and their economic futures instead of another give-away to banks and big tech companies. We urge swift consideration and passage of this legislation."

"Amidst an unprecedented debt and affordability crisis, everyday families across the country are struggling to make ends meet while big banks and big tech rake in record profits. At the same time, the Trump Administration has intentionally starved the Consumer Financial Protection Bureau of the resources necessary to protect borrowers and hold financial predators accountable," said Aissa Canchola Baez, Policy Director at Protect Borrowers. "Senator Warren's bill will ensure that the CFPB has the necessary funding to look out for everyday people at risk of getting ripped off. We applaud Senator Warren for introducing this bill and urge Senators to support and take action on this critical legislation as soon as possible."

"This bill makes the CFPB's funding stable and compulsory," said National Community Reinvestment Coalition President and CEO Jesse Van Tol. "It will stop administrations from attempting to starve and weaken the CFPB by not requesting the funds necessary for it to fulfill its mission. Consumers deserve a robust CFPB, and this bill will stop the gameplaying and ensure they have one."

"The CFPB has put more than $21 billion back into consumers' pockets, underscoring that a strong and independent watchdog can make a real difference in the lives of millions of American families," said Mike Calhoun, president of the Center for Responsible Lending. "This legislation would help safeguard the agency's ability to continue protecting families from financial abuse, policing unfair practices and holding bad actors accountable. It would also ensure that no future administration can effectively dismantle the nation's consumer watchdog by depriving it from the resources it needs to do its job."