Congressman Andy Barr Reintroduces Legislation To Reform CFPB Funding

ACA International supports the TABS Act, which would ensure CFPB accountability by funding the bureau through congressional appropriations.

In one of his first actions in the 119th Congress and as returning chair of the House Financial Institutions Subcommittee, U.S. Rep. Andy Barr, R-Ky., has reintroduced legislation to enact reforms at the Consumer Financial Protection Bureau.

The Taking Account of Bureaucrats’ Spending (TABS) Act would replace the CFPB’s current funding mechanism through the Federal Reserve with funding through the congressional appropriations process. According to a news release from Barr’s office, the current system results in “lack of proper oversight from Congress.”

“The CFPB is the most unaccountable and unchecked agency in the entire federal bureaucracy,” Barr said in the news release. “By reintroducing the TABS Act, I am taking action to bring the CFPB under the scrutiny it desperately needs. Congress and the American people deserve a say in how much funding is allocated to the CFPB, how it spends those funds, and whether the CFPB is fulfilling congressional objectives in a manner that would warrant reauthorization. The TABS Act will restore the separation of powers, end the CFPB’s regulatory overreach, and vindicate Congress’s power of the purse.”

Industry Support

ACA has consistently advocated for two key reforms at the bureau: funding through the congressional appropriations process and leadership by a five-member bipartisan commission.

“The TABS Act, introduced by Congressman Barr, establishes common-sense safeguards for American consumers by ensuring the CFPB is accountable to Congress—our elected representatives responsible for sound policy,” said ACA CEO Scott Purcell. “This approach aligns with our founding leaders’ vision of checks and balances to prevent government overreach. ACA International strongly supports this important legislation.”

Legislative History

The House Financial Services Committee advanced the legislation as part of a bill package on CFPB reform in the 118th Congress, ACA previously reported.

The bill package (PDF), H.R. 2798, brought together several proposals on CFPB reform into one piece of legislation focused on changing the funding and leadership structure of the bureau and requiring all proposed rules to consider the impact on small businesses, among other items.

Last year, members of the Committee on Banking, Housing and Urban Affairs focused on accountability for the CFPB also introduced legislation that would require its funding to be through annual appropriations designated by Congress, ACA previously reported.

The TABS Act is part of Barr’s “ongoing efforts to ensure robust congressional oversight of federal agencies, rein in regulatory overreach, and protect American consumers from unchecked government expansion,” according to the news release.