Senate GOP Cuts CFPB Funding Cap From 12% to 0%, Imposes Fed Pay Limits; Warren Fights Four Rule-Breaking Provisions

The Senate Banking Committee is advancing a proposal to eliminate all mandatory funding for the Consumer Financial Protection Bureau (CFPB) and to impose pay restrictions on many Federal Reserve employees. The CFPB, which is primarily funded through a cap on Federal Reserve earnings, faces a reduction in its funding cap from 12% to zero under the GOP plan. Senator Elizabeth Warren has criticized the legislation, identifying four provisions she deems in violation of Senate rules, and is actively working to restore the CFPB's funding in the bill. The GOP's move to cut off the CFPB's funding source has raised concerns about the future of this key consumer watchdog agency.