On July 23, the full Senate Committee on Appropriations approved 12 appropriations measures, including provisions to increase oversight of the Consumer Financial Protection Bureau by bringing its funding under the annual Congressional appropriations process and to change the CFPB’s leadership structure to a five-member commission.  Our discussion of the Subcommittee’s work leading to this approval can be found here. 

Similarly, last month the House of Representatives Committee on Appropriations approved its Fiscal Year 2016 Financial Services Bill, which includes the same provisions on the CFPB funding to eliminate direct funding from the Federal Reserve.  According to the House Committee on Appropriations, this change will allow for increased accountability and transparency of the agency’s activities and use of tax dollars.  Also, this legislation would require extensive reporting on CFPB activities and prohibit funding for the CFPB to issue a final rule on the use of arbitration until it conducts a thorough study.  We have discussed the CFPB’s March 10, 2015 Consumer Arbitration Study on multiple occasions, including most recently with respect to submission of a comment letter by the American Bankers Association, the Consumer Bankers Association, and the Financial Services Roundtable.