CFPB Budget Integrity Act

Bill Number

H.R. 3141

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Finance and Financial Sector

Status

Introduced

Latest Action

2025-05-01: Referred to the House Committee on Financial Services.

Last Updated

2025-05-21T12:17:53Z

AI-Generated Summary

Purpose

The CFPB Budget Integrity Act (H.R. 3141) aims to promote fiscal accountability for the Bureau of Consumer Financial Protection (CFPB) by capping the amount of unspent funds it can retain and requiring the transfer of any excess to the U.S. Treasury. This seeks to prevent the accumulation of large reserves by the agency, which enforces consumer protection laws in financial services.

Key Provisions

• Funding Cap on Unobligated Balances: Limits the CFPB's unspent (unobligated) funds at the end of each fiscal year to no more than 5% of its annual funding allocation (as defined under existing law). Any amount exceeding this cap must be transferred to the general fund of the U.S. Treasury.
• Enhanced Reporting Requirements: The CFPB Director must include a description of how any unspent funds were used in the agency's annual report to Congress, providing greater transparency on budget management.

Significant Changes to Existing Law

• Amends Section 1017(a)(2) of the Consumer Financial Protection Act of 2010 (12 U.S.C. 5497(a)(2)) by adding a new subparagraph (D) that introduces the 5% cap on unobligated balances and mandates transfers of excess funds—previously, the CFPB had no such statutory limit on carrying over unspent money.
• Modifies Section 1017(e)(4) (12 U.S.C. 5497(e)(4)) to expand the annual report's scope, requiring details on the use of unobligated balances, which were not previously mandated.

Potential Impacts

• On Government Agencies: The CFPB may face constraints on long-term planning or emergency reserves, potentially affecting its ability to hire staff, conduct investigations, or launch initiatives without additional congressional approval. The Treasury Department would receive transferred funds, increasing general revenue available for other federal priorities.
• On Citizens: Indirect effects could include reduced CFPB flexibility in protecting consumers from unfair financial practices (e.g., predatory lending), though the agency's core operations are unlikely to halt. No direct impact on international relations.
• Broader Fiscal Effects: Encourages more efficient use of taxpayer dollars by the CFPB, an agency funded through assessments on large banks rather than annual appropriations.

Main Stakeholders Affected

• Bureau of Consumer Financial Protection (CFPB): Primary target, as it must comply with new caps and reporting, potentially altering its budgeting practices.
• U.S. Congress: Gains enhanced oversight through required reports; sponsors (e.g., Reps. Downing, Meuser, Ogles, Sessions) represent interests in fiscal restraint.
• U.S. Treasury Department: Benefits from influx of excess funds to its general account.
• Financial Institutions and Consumers: Banks assessed for CFPB funding may see indirect relief if reserves are reduced; consumers rely on the CFPB for enforcement against financial abuses.

Notable Legal, Constitutional, or Political Implications

• Legal: Reinforces congressional authority over federal agency funding under Article I of the U.S. Constitution, which grants Congress the power of the purse. No direct constitutional challenges anticipated, but it could invite litigation if viewed as unduly restricting an independent agency's operations.
• Political: Highlights ongoing debates about the independence of post-financial crisis agencies like the CFPB, established under the Dodd-Frank Act. Critics may see it as a check on regulatory overreach, while supporters of consumer protection might argue it undermines the agency's effectiveness without addressing core funding sources. The bill's referral to the House Financial Services Committee suggests it fits into broader efforts to reform financial regulation.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Downing, Troy [R-MT-2]

Cosponsors (6)

Rep. Meuser, Daniel [R-PA-9], Rep. Ogles, Andrew [R-TN-5], Rep. Sessions, Pete [R-TX-17], Rep. Bacon, Don [R-NE-2], Rep. Gill, Brandon [R-TX-26], Rep. Begich, Nicholas J. [R-AK-At Large]

Recent Actions

• 2025-05-01: Referred to the House Committee on Financial Services.
• 2025-05-01: Introduced in House
• 2025-05-01: Introduced in House

Bill Versions

• CFPB Budget Integrity Act — issued 2025-05-01 — PDF (2 pages)