The Consumer Financial Protection Bureau has lived, again, to fight another day. This time thanks to the Senate’s procedural referee.
Driving the news: The Senate Parliamentarian has ruled that a proposal to eliminate all funding for the CFPB, a key provision in Senate Republicans’ sweeping “One Big, Beautiful Bill”, violates the Byrd Rule and cannot be passed through the budget reconciliation process. That means it would require 60 votes to advance, effectively sidelining the measure in a chamber with 53 Republicans.
Why it matters: The CFPB, which has long been a target for Republicans, was once again in the crosshairs. The proposed provision would have capped the agency’s funding at 0% of the Federal Reserve’s operating expenses, effectively eliminating it. The ruling blocks this effort from moving forward as part of the fast-track reconciliation process.
The big picture: Senate Republicans are trying to push a massive tax and spending package, nicknamed the “One Big, Beautiful Bill” through Congress before July 4. The reconciliation process allows them to avoid a Democratic filibuster, but only for provisions that directly affect federal spending. Policy changes that don’t meet that bar get tossed.
Other provisions struck down:
- A proposal to cut Federal Reserve staff pay, which would have saved $1.4 billion.
- A measure to eliminate the Public Company Accounting Oversight Board (PCAOB) and transfer its duties to the SEC.
- A reduction of funding for the Office of Financial Research, aimed at saving $293 million.
- A repeal of vehicle emissions standards set to take effect in 2027.
Between the lines: The parliamentarian’s office is still reviewing the 1,000-page bill. Democrats, including Sen. Jeff Merkley [D-Ore.] and Sen. Elizabeth Warren [D-Mass.], quickly declared the rulings a victory and vowed to keep scrutinizing the package. Merkley referred to the legislation as the “Great Betrayal,” while Warren called the rejected proposals “reckless” and “dangerous.”
What’s next: Senate Republicans must now decide whether to amend the bill to comply with reconciliation rules or try to secure 60 votes, considered to be an unlikely outcome given its current composition. GOP leaders say they remain committed to defunding the CFPB and are exploring other legislative avenues.
Sen. Tim Scott [R-S.C.], Chair of the Senate Banking Committee, said discussions with the parliamentarian are ongoing and that his colleagues “remain committed to cutting wasteful spending at the CFPB.”
Flashback:
