The White House proposed significant restructuring of the Consumer Financial Protection Bureau ("CFPB").

In the "Major Savings and Reforms" section of its FY 2019 budget, the White House characterized the CFPB as an "independent agency with a single unaccountable director who is able to draw funding from the Federal Reserve without oversight from Congress." The administration's budget would subject the CFPB to discretionary appropriations beginning in 2020, rather than allowing unchecked access to the Federal Reserve, and to cap its transfers at $485 million. In addition, the White House criticized the agency's "unilateral" powers, and proposed to restrict the CFPB's enforcement authority. The White House called for a two-year implementation of the reforms in order to facilitate an "efficient transition."

The CFPB, under Acting Director Mick Mulvaney, also released a strategic plan for fiscal years 2018-2022. In line with his previous commitment to a restrained approach, which included his decision not to request any funding from the Federal Reserve for the second quarter of FY 2018, Director Mulvaney pledged to "fulfill the [CFPB]'s statutory responsibilities, but go no further." He reiterated that the CFPB will no longer seek to "push the envelope," and characterized the strategic plan as a "bulwark against the misuse of [the CFPB's] unparalleled powers."

Commentary / Steven Lofchie

It will be interesting to see if both parties can support bringing the CFPB within a Constitutional structure. For the Democrats, who had previously supported a CFPB unfettered by Presidential or Congressional restraints, the idea of imposing Congressional budgetary control (now that the CFPB is no longer directed by a Democrat-appointee) may have some appeal, particularly given the possibility they may gain more control in Congress.

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