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The U.S. Senate Banking Committee Republicans have released revised budget bill plans that abandon earlier efforts to dismantle the Public Company Accounting Oversight Board (PCAOB) while proposing a significant reduction in funding for the Consumer Financial Protection Bureau (CFPB).

Committee Chairman Tim Scott (R-S.C.) unveiled the updated proposal late Thursday as Senate Republicans aim to advance their “One Big Beautiful” budget bill despite recent Senate parliamentarian rulings limiting the scope of reconciliation measures.

In a statement, Chairman Scott emphasized the proposal’s focus on fiscal responsibility and government efficiency. “These provisions will reduce waste and duplication in financial regulation, put our federal government on a more sustainable fiscal path, allow Americans to keep more of their hard-earned money, and bolster our national security,” Scott said.

Previously, the committee had proposed eliminating the PCAOB by merging it into the U.S. Securities and Exchange Commission and cutting the CFPB’s Federal Reserve funding entirely. The new draft maintains the PCAOB’s current status but seeks to cap the CFPB’s funding at 6.5% of the Fed’s adjusted operating budget — a steep reduction from the existing 12% cap, though higher than the 5% limit set by House Republicans.

These changes come after the Senate parliamentarian ruled the original provisions defunding the CFPB and eliminating the PCAOB ineligible for inclusion in the reconciliation budget bill. Other previously proposed cuts, including lowering pay for Federal Reserve staff and reducing funding for the Office of Financial Research, were also removed.

The revised bill retains several other provisions, such as rescinding unspent Biden-era green housing funds, revoking an SEC technology reserve fund, and authorizing $1 billion for Defense Production Act spending.

Democratic Senator Elizabeth Warren (D-Mass.), ranking member of the Banking Committee, praised Republicans’ withdrawal from fully defunding the CFPB but warned that the fight is ongoing. “Senate Republicans are continuing to pursue cuts for the CFPB’s budget so they can hand out more tax breaks for billionaires and billionaire corporations,” Warren said. She also noted that Democrats plan to introduce an amendment aimed at reversing the proposed funding reductions, highlighting the CFPB’s record of returning $21 billion to defrauded American families.