TABS Act of 2025: CFPB Gets a New Name and Congress Controls its Budget

The TABS Act of 2025 makes two significant changes to the agency currently known as the Bureau of Consumer Financial Protection (also known as the CFPB). First, it's getting a new name: the Consumer Financial Empowerment Agency. Second, and more importantly, the agency's funding will now be directly controlled by Congress through the regular appropriations process, starting in fiscal year 2026 (SEC. 3).

Renaming the Game

The bill spends a lot of time (SEC. 2) swapping out "Bureau of Consumer Financial Protection" for "Consumer Financial Empowerment Agency" in a laundry list of existing laws, from the Dodd-Frank Act to the Truth in Lending Act. While a name change might seem like window dressing, it could signal a shift in how the agency sees its role – perhaps moving towards a more collaborative approach, as opposed to strictly enforcement.

Show Me the Money

The bigger deal is the change to the CFPB's funding. Previously, the CFPB got its funding directly from the Federal Reserve. Now, Congress will decide the agency's budget each year, just like they do for most other federal agencies. For example, if the newly-named Consumer Financial Empowerment Agency wants to launch a program to help first-time homebuyers avoid predatory loans, they'll need to get explicit approval for that spending from Congress during the appropriations process. This is a significant change from the agency's previous funding independence. The TABS Act removes prior budget and finance subsections, giving Congress more direct oversight (SEC. 3).

Real-World Ripple Effects

This shift could play out in a few ways. For instance, a small business owner dealing with complex financial regulations might see a change in how the agency approaches enforcement. Or, a consumer fighting unfair debt collection practices could find the agency has fewer resources for investigations, depending on how Congress allocates funds. It's also worth noting that the industries the CFPB regulates, like banks and investment firms, could see this as a chance to influence the agency's priorities through Congress. The change could make the agency more accountable and efficient, but it also opens the door for potential political pressure on its operations.