A joint resolution providing for congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Bureau of Consumer Financial Protection relating to the withdrawal of the rule relating to "Consumer Financial Protection Circular 2024-04: Whistleblower Protections Under CFPA Section 1057".
- Bill Number
- S.J.Res. 135
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 2
- Policy Area
- Finance and Financial Sector
- Status
- Introduced
- Latest Action
- 2026-05-13: Motion to proceed to consideration of measure rejected in Senate by Voice Vote. (consideration: CR S2272)
- Last Updated
- 2026-05-19T18:21:50Z
AI-Generated Summary
Purpose
This joint resolution (S.J. Res. 135) uses the Congressional Review Act (CRA, under chapter 8 of title 5, U.S. Code) to disapprove a specific rule by the Bureau of Consumer Financial Protection (CFPB). The targeted rule withdraws CFPB's "Consumer Financial Protection Circular 2024-04," which provides guidance on whistleblower protections under Section 1057 of the Consumer Financial Protection Act (CFPA). By disapproving the withdrawal, the resolution keeps the original Circular in effect.
Key Provisions
- Disapproval of CFPB rule: Explicitly disapproves the CFPB's rule published at 90 Fed. Reg. 20084 (May 12, 2025), which sought to withdraw Circular 2024-04 (published at 89 Fed. Reg. 65170, August 9, 2024).
- No force or effect: The withdrawn rule is nullified, preserving the Circular's guidance on protections for whistleblowers reporting violations in consumer financial products or services.
Significant Changes to Existing Law
- No new laws are created; instead, it reverses an agency action via CRA, blocking CFPB from eliminating its own interpretive guidance.
- Reinforces the original Circular, which clarifies that whistleblowers are protected from retaliation when reporting potential CFPA violations to employers, regulators, Congress, or the public.
Potential Impacts
- Government agencies: Limits CFPB's ability to retract prior guidance, potentially requiring continued enforcement of whistleblower protections.
- Citizens and whistleblowers: Strengthens protections for individuals reporting misconduct in banking, lending, or other consumer finance areas, encouraging more reports.
- Financial institutions: Increases compliance burdens, as they must adhere to the Circular's anti-retaliation rules without the withdrawal.
- No direct impact on international relations.
Main Stakeholders Affected
- CFPB: Agency operations and rulemaking authority constrained.
- Whistleblowers: Enhanced job protections for reporting financial misconduct.
- Consumer financial companies (e.g., banks, lenders): Greater risk of enforcement actions based on whistleblower complaints.
- Congress: Demonstrates use of CRA to oversee independent agencies like CFPB.
Notable Legal, Constitutional, or Political Implications
- Legal: Invokes CRA's fast-track process (bypassing committee via petition under 5 U.S.C. 802(c)), allowing simple majority disapproval without presidential signature if enacted.
- Constitutional: Upholds Congress's oversight of executive agency actions, aligning with separation of powers.
- Political: Highlights partisan or oversight tensions with CFPB (introduced by Sen. Warner, D-VA); could set precedent for challenging agency withdrawals of prior rules.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Recent Actions
- 2026-05-13: Motion to proceed to consideration of measure rejected in Senate by Voice Vote. (consideration: CR S2272)
- 2026-04-27: Placed on Senate Legislative Calendar under General Orders. Calendar No. 391.
- 2026-04-27: Senate Committee on Banking, Housing, and Urban Affairs discharged, by petition, pursuant to 5 U.S.C. 802(c).
- 2026-04-27: Senate Committee on Banking, Housing, and Urban Affairs discharged, by petition, pursuant to 5 U.S.C. 802(c).
- 2026-03-19: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- 2026-03-19: Introduced in Senate
Bill Versions
- Providing for congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Bureau of Consumer Financial Protection relating to the withdrawal of the rule relating to Consumer Financial Protection Circular 2024–04: Whistleblower Protections Under CFPA Section 1057. — issued 2026-03-19 — PDF (2 pages)
- Providing for congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Bureau of Consumer Financial Protection relating to the withdrawal of the rule relating to Consumer Financial Protection Circular 2024–04: Whistleblower Protections Under CFPA Section 1057. — issued 2026-04-27 — PDF (4 pages)