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 2022-04: Insufficient Data Protection or Security for Sensitive Consumer Information".
- Bill Number
- S.J.Res. 164
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 2
- Policy Area
- Finance and Financial Sector
- Status
- Introduced
- Latest Action
- 2026-04-13: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- Last Updated
- 2026-05-21T14:35:52Z
AI-Generated Summary
Purpose
This joint resolution (S.J. Res. 164) uses the Congressional Review Act (a law allowing Congress to overturn certain federal agency rules) to block the Bureau of Consumer Financial Protection (CFPB, a government agency overseeing consumer financial products) from withdrawing its "Consumer Financial Protection Circular 2022-04." The circular warned that weak data protection for sensitive consumer information—like personal or financial details—could violate federal consumer protection laws by being unfair or deceptive.
Key Provisions
- Disapproval of withdrawal rule: Congress explicitly disapproves the CFPB's May 12, 2025, rule (published at 90 Fed. Reg. 20084) that withdrew Circular 2022-04 (originally issued August 6, 2022, at 87 Fed. Reg. 54346).
- No force or effect: The withdrawal rule is nullified, meaning Circular 2022-04 remains active and enforceable.
Significant Changes to Existing Law
- Reverses the CFPB's decision to pull back the circular, restoring its guidance on data security as a potential enforcement priority under laws like the Consumer Financial Protection Act.
- No new laws are created; it simply overrides an agency action via congressional veto power.
Potential Impacts
- On government agencies: Limits CFPB's flexibility to retract prior guidance, potentially increasing its enforcement focus on data breaches or weak security by financial firms.
- On citizens: May strengthen protections for consumer data by keeping pressure on companies to improve security practices, reducing risks of identity theft or leaks.
- On businesses: Financial institutions (e.g., banks, lenders) face continued scrutiny and possible penalties for inadequate data safeguards, without the relief from the withdrawn circular.
- No direct impact on international relations.
Main Stakeholders Affected
- CFPB: Loses ability to retract the circular, affecting its regulatory priorities.
- Financial companies: Banks, credit card issuers, and others handling consumer data must maintain strong security to avoid CFPB actions.
- Consumers: Benefit from ongoing emphasis on data protection.
- Congress: Demonstrates use of oversight tools against executive branch agencies.
Notable Legal, Constitutional, or Political Implications
- Legal: Invokes the Congressional Review Act (5 U.S.C. Chapter 8), a fast-track process for Congress to nullify agency rules with simple majorities; once passed, it's immune to judicial review.
- Constitutional: Reinforces Congress's oversight of executive agencies, checking "administrative state" actions without new legislation.
- Political: Introduced by Sen. Rosen (D-NV) on April 13, 2026, and referred to the Senate Banking Committee; signals bipartisan or targeted pushback on CFPB rulemaking amid debates over regulation versus industry burden.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Recent Actions
- 2026-04-13: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- 2026-04-13: 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 2022–04: Insufficient Data Protection or Security for Sensitive Consumer Information. — issued 2026-04-13 — PDF (2 pages)