Rep. Andy Barr [R-Kent.], the chairman of the House Financial Services Subcommittee on Financial Institutions, last week reintroduced H.R. 654, the Taking Account of Bureaucrats’ Spending (TABS) Act, aiming to bring the Consumer Financial Protection Bureau under the Congressional appropriations process. The bill would replace the CFPB’s current funding model, which relies on the Federal Reserve, with a more traditional process involving direct Congressional oversight.
Key Highlights
- Current System: The CFPB is funded directly by the Federal Reserve, bypassing Congressional oversight. This setup has led to concerns about the agency’s lack of accountability.
- TABS Act Proposal: The bill would force the CFPB to undergo the same appropriations process as other federal agencies, allowing lawmakers more control over its budget and operations. The full text of the bill has not yet been published
- Rep. Barr’s Statement: Barr described the CFPB as “the most unaccountable and unchecked agency in the entire federal bureaucracy,” stressing that the bill would restore checks and balances and prevent government overreach.
Industry reactions: The TABS Act has received broad support from key industry groups, many of whom argue that increased oversight of the CFPB is crucial for preventing regulatory overreach and ensuring that the agency’s actions are in line with Congressional objectives.
- ACA International: CEO Scott Purcell voiced strong support, emphasizing that the bill aligns with the founders’ vision of checks and balances and would safeguard American consumers by ensuring the CFPB is held accountable.
- American Bankers Association (ABA): ABA President Rob Nichols commended Barr for focusing on empowering consumers while avoiding overregulation of banks.
- America’s Credit Unions: Jim Nussle, President and CEO, echoed these sentiments, highlighting that the TABS Act would provide necessary oversight and transparency to the CFPB.
- AFSA: The American Financial Services Association’s Bill Himpler added that bringing the CFPB under traditional appropriations would clarify rules for financial institutions and help ensure that affordable credit remains available to consumers.
What’s next: The TABS Act is part of Barr’s broader effort to ensure that federal agencies, including the CFPB, remain subject to proper checks and balances.
