Sen. Jerry Moran (R-Kan.) introduced legislation last week that would reorganize the CFPB by replacing the director with a five-member commission confirmed by the Senate and subject the CFPB budget to the congressional appropriations process.
“Allowing a single unelected official to define their own jurisdiction and regulate vast segments of our economy without accountability or restraint is irresponsible regardless of political party,” Moran said. “This commonsense legislation brings a variety of perspectives to the Bureau and gives Congress the oversight authority required for such a powerful agency. We stand ready to work with the president to make certain the CFPB’s mission of consumer protection is both effective and accountable. History has shown that the ‘power of the purse’ is a critical tool that Congress employs to hold agencies accountable. The CFPB has more power and authority than almost any independent agency in history and asking them to present a budget to Congress for approval is a very modest request.”
Moran’s legislation, which was originally introduced in 2011, would enact reforms advocated by 42 other Senate members in a letter sent to President Obama last week. Signatories to the letter said that they will continue to oppose the nomination of any individual to the position of CFPB director until key reforms are made.
The Dodd-Frank Act authorizes the CFPB director to set the annual budget through the withdrawal of funds from the Federal Reserve. The legislation also prohibits the Fed from denying or adjusting the CFPB director’s budget request.