Bureau of Consumer Financial Protection Commission Act

Bill Number

H.R. 3445

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Finance and Financial Sector

Status

Introduced

Latest Action

2025-05-15: Referred to the House Committee on Financial Services.

Last Updated

2026-05-18T16:07:54Z

AI-Generated Summary

Purpose of the Legislation

This bill, titled the "Bureau of Consumer Financial Protection Commission Act," aims to restructure the Bureau of Consumer Financial Protection (CFPB) by transforming it from an independent bureau within the Federal Reserve System, led by a single director, into a fully independent agency governed by a five-member commission. The goal is to promote more balanced leadership and oversight in regulating consumer financial products and services.

Key Provisions

• Agency Structure and Independence: The CFPB is redesignated as an independent agency, no longer housed within the Federal Reserve System. It gains authority to issue regulations and orders to enforce consumer protection laws.
• Commission Composition:
• A five-member commission appointed by the President with Senate confirmation.
• Requirements: At least two members must have private sector experience in consumer financial products/services; at least one must have served as a state bank supervisor (an official who oversees state-chartered banks).
• Terms: Staggered initial terms of 1–5 years, followed by five-year terms; members can be removed by the President only for inefficiency, neglect of duty, or wrongdoing.
• Bipartisan limit: No more than three members from the same political party.
• Prohibition: Commissioners cannot hold other jobs.
• Leadership and Operations:
• The current CFPB Director serves as the initial Chair until the full commission is appointed.
• The Chair handles day-to-day executive functions (e.g., personnel, budgeting) but must follow commission policies.
• Quorum rules: Initially, the Chair alone suffices for six months; later, three members (or two if vacancies exist) form a quorum for decisions.
• Compensation: Chair at Executive Schedule Level I (top executive pay); other members at Level II.
• Advisory Council Updates: At least half of the CFPB's advisory council members must have private sector experience in consumer finance.
• Conforming Amendments: Updates references in the Consumer Financial Protection Act of 2010 and other laws (e.g., Dodd-Frank Act, Electronic Fund Transfer Act, Real Estate Settlement Procedures Act) to replace "Director" with "Bureau," "Chair," or "commission" as appropriate, ensuring seamless transition.
• Deeming Clause: Existing references to the "Director" in laws and documents are automatically treated as referring to the new commission-led structure.

Significant Changes to Existing Law

• Leadership Shift: Replaces the single-director model (established under the 2010 Dodd-Frank Act) with a multi-member commission, similar to structures at agencies like the Federal Trade Commission or Securities and Exchange Commission.
• Severance from Federal Reserve: Removes the CFPB's placement within the Federal Reserve System, eliminating requirements for coordination with the Federal Reserve Board on certain operations.
• Bipartisan and Expertise Requirements: Introduces political balance and mandatory industry/state expertise for commissioners, which were not features of the original single-director setup.
• Technical Updates: Strikes outdated provisions (e.g., specific office titles, Federal Reserve ties) and harmonizes language across 10+ federal laws to reflect the new structure, without altering the CFPB's core enforcement powers.

Potential Impacts

• On Government Agencies: The CFPB will operate more autonomously from the Federal Reserve, potentially streamlining internal decisions but requiring new coordination mechanisms. Other agencies (e.g., FDIC, Federal Reserve) may see minor administrative changes due to updated references in joint laws.
• On Citizens: Could lead to more stable, less politicized consumer protections (e.g., rules on loans, credit cards, mortgages) through collective commission decision-making, benefiting everyday users of financial services by reducing risks of abrupt policy shifts.
• On International Relations: No direct impacts; the bill focuses on domestic consumer finance regulation.

Main Stakeholders Affected

• CFPB Leadership and Staff: Current Director transitions to Chair; employees may experience changes in reporting lines under commission oversight.
• Financial Industry: Banks, lenders, and service providers (e.g., those offering mortgages or payment apps) will interact with a commission rather than a single leader, potentially facing more deliberative rulemaking.
• Consumers: Individuals and families using financial products, who rely on the CFPB for protections against unfair practices.
• Appointing Officials: The President and Senate, who gain a role in confirming diverse commissioners.
• State Regulators: State bank supervisors, whose expertise is prioritized for appointments, and states that collaborate with the CFPB.

Notable Legal, Constitutional, or Political Implications

• Legal Continuity: The deeming clause and conforming amendments minimize disruptions, ensuring ongoing CFPB operations and enforceability of existing rules without needing immediate re-litigation.
• Constitutional Aspects: Upholds the Senate's "advice and consent" role in appointments (per Article II of the U.S. Constitution) and limits presidential removal powers to specific causes, balancing executive authority with independence.
• Political Implications: The bipartisan commission structure may reduce perceptions of partisanship in CFPB decisions, fostering broader consensus on regulations, though initial staggered appointments could delay full implementation. This aligns with ongoing debates about agency independence post-Dodd-Frank.

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

Sponsor

Rep. Huizenga, Bill [R-MI-4]

Cosponsors (10)

Rep. Barr, Andy [R-KY-6], Rep. Meuser, Daniel [R-PA-9], Rep. Fitzgerald, Scott [R-WI-5], Rep. Rose, John W. [R-TN-6], Rep. Moore, Tim [R-NC-14], Rep. Timmons, William R. [R-SC-4], Rep. Williams, Roger [R-TX-25], Rep. Loudermilk, Barry [R-GA-11], Rep. Buchanan, Vern [R-FL-16], Rep. Mann, Tracey [R-KS-1]

Recent Actions

• 2025-05-15: Referred to the House Committee on Financial Services.
• 2025-05-15: Introduced in House
• 2025-05-15: Introduced in House

Bill Versions

• Bureau of Consumer Financial Protection Commission Act — issued 2025-05-15 — PDF (16 pages)