In addition, the bill would forbid the CFPB from spending any of its new budget on collecting small business loan applicant data. Section 1071 of the Dodd-Frank Act mandated the collection of this information.
This defunding would effectively block the implementation of new lender reporting requirements that Republicans tried unsuccessfully to repeal, but it would also put the CFPB in the unusual position of being financially unable to do what Dodd-Frank and a subsequent court-ordered settlement told it to do.
Last month, the U.S. Supreme Court upheld the method of funding that the CFPB has used since its creation after the 2008 financial crisis, and attorneys predicted the victory will usher in a wave of activity at the agency.
Financial Services and General Government Subcommittee Chairman Dave Joyce, R-Ohio, said in a statement that the bill “reins in wasteful spending,” and House Appropriations Committee Chairman Tom Cole, R-Okla., said the bill “protects taxpayers and constrains the burdensome hands of unelected bureaucrats.”
