CUNA-sought CFPB reforms in House FY24 FSGG appropriations bill

June 22, 2023

The House Appropriations Subcommittee on Financial Services and General Government (FSGG) released its FY24 draft bill Wednesday night with several items of interest to credit unions. The FSGG subcommittee started marking up the bill Thursday morning.

The bill would fund the Consumer Financial Protection Bureau (CFPB) through the appropriations process and replace the single director with a bipartisan, five-member commission, both priorities CUNA has championed. It also contains nearly $46 less for the Treasury’s Community Development Financial Institutions (CDFI) Fund.

CUNA wrote a letter to committee leadership Thursday supporting the CFPB reforms but called for additional support for the CDFI Fund and additional funding for Treasury’s Financial Crimes Enforcement Network.

“We fully support the bill’s reforms to the Consumer Financial Protection Bureau, which would provide additional transparency and accountability to the bureau,” said CUNA President/CEO Jim Nussle. “However, we strongly encourage the committee to increase funding levels for the Treasury’s Community Development Financial Institutions Fund. The fund is an extremely good use of federal funds, as it leverages those dollars into real differences for communities. We’re disappointed Congress would propose a nearly $46 million cut at a time when communities are struggling.”

The bill funds NCUA’s Community Development Revolving Loan Fund at $3.5 million, the same level as last year.

It also contains provisions to prohibit:

  • The CFPB from using funds to enforce its section 1071 rule.
  • Funding for FinCEN to promulgate the beneficial ownership reporting rules that do not reflect Congressional intent.
  • Funds for the Federal Housing Finance Agency to charge good credit borrowers with higher fees on their home loan.
  • Funds to be used to establish a U.S. Central Bank Digital Currency or discontinue paper currency as the U.S. legal tender.