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 "Procedures for Supervisory Designation Proceedings".
- Bill Number
- S.J.Res. 178
- 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
- 2026-04-17T18:50:42Z
AI-Generated Summary
Purpose
This joint resolution (S.J. Res. 178) uses the Congressional Review Act (a law allowing Congress to overturn certain federal agency actions) to block a decision by the Bureau of Consumer Financial Protection (CFPB, an agency that protects consumers from unfair financial practices). Specifically, it disapproves the CFPB's rule that withdrew (canceled) its earlier rule on "Procedures for Supervisory Designation Proceedings," published on September 25, 2025.
Key Provisions
- Disapproval of CFPB Action: Congress declares the CFPB's withdrawal rule (90 Fed. Reg. 46036) invalid, giving it "no force or effect."
- Reinstatement Effect: By blocking the withdrawal, the original CFPB rule on procedures for supervisory designation proceedings remains in place.
- Supervisory Designation Explained: This refers to the process where the CFPB decides to closely oversee (supervise) large non-bank financial companies if they might risk harming consumers.
Significant Changes to Existing Law
- No new laws are created; instead, it reverses the CFPB's administrative action under the Congressional Review Act.
- Prevents the cancellation of the 2025 procedures rule, maintaining standardized steps for how the CFPB designates companies for supervision (e.g., notice, hearings, appeals).
Potential Impacts
- On Government Agencies: Limits CFPB's flexibility to update or remove its own rules, potentially requiring more formal processes for future changes.
- On Citizens: Preserves consumer protections by keeping procedural safeguards in place for CFPB oversight of big financial firms, ensuring fairer designation processes.
- No Direct International Relations Impact: Focuses on domestic financial regulation.
Main Stakeholders Affected
- CFPB: Loses ability to withdraw its rule, affecting its rulemaking authority.
- Non-Bank Financial Companies (e.g., large fintech or payment firms): Benefit from continued procedural protections in CFPB supervision decisions.
- Consumers: Indirectly protected through stable oversight rules.
- Congress: Asserts oversight over executive branch agencies.
Notable Legal, Constitutional, or Political Implications
- Legal: Invokes the Congressional Review Act, a rare tool (used over 20 times since 1996) that fast-tracks disapproval without presidential signature if passed by both chambers.
- Constitutional: Reinforces Congress's oversight of executive agencies under Article I (legislative power).
- Political: Introduced by Sen. Warren (D-MA), signals partisan pushback on CFPB changes, potentially during a divided government; if enacted, it could set precedent for challenging agency withdrawals.
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 Procedures for Supervisory Designation Proceedings. — issued 2026-04-13 — PDF (2 pages)