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Bill seeks to subject CFPB to congressional appropriations process

The House Appropriations Committee released the 2013 fiscal year appropriations bill on Tuesday, which includes a provision to that would subject the Consumer Financial Protection Bureau to the congressional appropriations process.

The CFPB, which currently receives a certain percentage of the Federal Reserve’s budget, has been the target of criticism from opponents who charge that the agency has too much power because it is not subject to the congressional appropriations process.

“The CFPB…is specifically designed to evade congressional oversight,” a House Financial Services Committee statement said, according to ReverseMortgageDaily. “The congressional appropriations process is the most time-tested method for monitoring the effectiveness of government agencies and holding them accountable to the American taxpayer.”

Under the new provision, beginning in 2014, Congress will be able to review any transfers that the CFPB receives from the Fed, and the agency will be required to provide quarterly reports on spending and activities. The new legislation would allow for increased accountability and transparency of the CFPB’s use of taxpayer dollars and activities.

“In addition to common-sense reductions in federal spending, the American people deserve accountability from the taxpayer-funded offices, which are supposed to act in the nation’s best interests,” Rep. Jo Ann Emerson (R-Mo.) said, MortgageOrb\ reports.

The bill will also establish annual funding for other federal agencies, including the Small Business Administration and Internal Revenue Service.

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