AFSA 100 Day Tracker | Cruz, Ratcliffe Propose Bills to Abolish CFPB

WHAT HAPPENED

Yesterday, Sen. Ted Cruz (R-TX) and Rep. John Ratcliffe (R-TX) introduced companion legislation to abolish the Consumer Financial Protection Bureau (CFPB). The bills, S. 370 and H.R.1031 respectively, would repeal Title X of the Dodd-Frank Wall Street Reform and Consumer Protection Act, which established the CFPB. S. 370 has four co-sponsors and H.R. 1031 has 13.

The bill “gives Congress the opportunity to free consumers and small businesses from the CFPB’s regulatory blockades and financial activism, which stunt economic growth,” said Sen. Cruz. “While there’s much more to do to scale back the harmful regulatory impositions of Dodd-Frank, this legislation takes a critical step in the right direction,” he added.

Sen. Mike Rounds (R-SD) also introduced S.365 yesterday, which would “dismantle” the agency by eliminating its funding stream from the Federal Reserve.

WHAT IT MEANS TO AFSA MEMBERS

Senator Cruz and Rep. Ratcliffe’s legislation abolishing the CFPB will face strong opposition from Democrats, who continue to defend the Bureau. Sen. Rounds’ legislation eliminating the CFPB’s funding from the Federal Reserve would force a discussion on whether to put the Bureau under congressional appropriations, a concept that will likely be in Rep. Jeb Hensarling’s (R-TX) Financial CHOICE Act.