Protecting American Consumers Act

Bill Number: S. 4684
Origin Chamber: Senate
Congress: 119th Congress, Session 2
Policy Area: Finance and Financial Sector
Status: Introduced
Latest Action: 2026-06-04: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
Last Updated: 2026-07-01T16:20:35Z

AI-Generated Summary

Purpose

This legislation amends the Consumer Financial Protection Act of 2010 to establish a mandatory minimum funding level for the Bureau of Consumer Financial Protection (CFPB), ensuring it receives a set amount of resources from the Federal Reserve System each fiscal year.

Key Provisions

The bill modifies Section 1017(a)(2) of the Consumer Financial Protection Act of 2010 (12 U.S.C. 5497(a)(2)).
It requires that the amount transferred to the CFPB in each fiscal year be no less than 12 percent of the total operating expenses of the Federal Reserve System, based on the 2009 Annual Report of the Board of Governors.
It updates a cross-reference in subparagraph (B) from "(A)(iii)" to "(A)" to align with the revised structure.

Significant Changes to Existing Law

Replaces the prior language in subparagraph (A) with a compulsory floor tied to a fixed percentage of the Federal Reserve's 2009 operating expenses.
Introduces a "not less than" requirement, shifting the funding mechanism to guarantee a baseline level rather than allowing for potentially lower transfers.

Potential Impacts

On government agencies: The CFPB would receive assured minimum funding from the Federal Reserve, potentially stabilizing its operations, while the Federal Reserve would face a mandatory transfer obligation.
On citizens: Consumers could benefit from sustained or increased CFPB activities related to financial protection, though the bill does not specify direct effects on individuals.
On international relations: No direct provisions or impacts are outlined in the legislation.

Main Stakeholders Affected

The Bureau of Consumer Financial Protection, which gains a funding guarantee.
The Board of Governors of the Federal Reserve System, responsible for the transfers.
Consumers and financial service users, as the primary focus of the CFPB's mandate.
Financial institutions and related entities subject to CFPB oversight.

Notable Legal, Constitutional, or Political Implications

The change reinforces the CFPB's funding structure outside of standard congressional appropriations, potentially affecting debates over agency independence.
It may have implications for the separation of powers, as it mandates transfers from the Federal Reserve without annual legislative approval.
No explicit constitutional challenges or international legal issues are addressed in the bill text.

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

Sponsor

Sen. Warren, Elizabeth [D-MA]

Cosponsors (10)

Sen. Reed, Jack [D-RI], Sen. Warner, Mark R. [D-VA], Sen. Van Hollen, Chris [D-MD], Sen. Cortez Masto, Catherine [D-NV], Sen. Smith, Tina [D-MN], Sen. Warnock, Raphael G. [D-GA], Sen. Kim, Andy [D-NJ], Sen. Gallego, Ruben [D-AZ], Sen. Blunt Rochester, Lisa [D-DE], Sen. Alsobrooks, Angela D. [D-MD]

Recent Actions

2026-06-04: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
2026-06-04: Introduced in Senate

Bill Versions

Protecting American Consumers Act — issued 2026-06-04 — PDF (2 pages)