The "Defund the CFPB Act" amends the Consumer Financial Protection Act of 2010 to limit the Bureau of Consumer Financial Protection's funding to $0.
Ted Cruz
Senator
TX
The "Defund the CFPB Act" amends the Consumer Financial Protection Act of 2010 to eliminate the funding available to the Bureau of Consumer Financial Protection, effectively defunding the agency. This would be achieved by capping the amount the Director of the Bureau may request to fund the Bureau's activities to $0.
Defund the CFPB Act: New Bill Zeros Out Consumer Watchdog's Budget
The "Defund the CFPB Act" flat-out eliminates funding for the Consumer Financial Protection Bureau (CFPB). Introduced as a direct amendment to the Consumer Financial Protection Act of 2010, Section 2 of this new bill sets the CFPB's funding to $0, effectively shutting down the agency designed to protect consumers from financial fraud and abuse.
Pulling the Plug
This isn't about trimming budgets; it's about switching off the lights. The bill directly amends Section 1017(a) of the Consumer Financial Protection Act of 2010—the part that deals with how the CFPB gets its money. By setting the funding to zero, the agency would have no resources to operate. This means everything from investigating complaints about predatory lending to enforcing consumer protection laws would grind to a halt.
Real-World Shutdown
Imagine you're a small business owner facing unfair charges from a credit card processor, or a homeowner battling a surprise foreclosure due to shady mortgage practices. Normally, the CFPB could step in, investigate, and potentially enforce penalties. With this bill, that safety net disappears. The CFPB, which has handled millions of consumer complaints, would be gone. So, if a bank illegally forecloses on a homeowner, that homeowner is left to fend for themselves, likely needing to hire expensive lawyers with no guarantee of a fair fight.
The Bigger Picture
This move essentially removes a major player in financial oversight. The CFPB was created in response to the 2008 financial crisis to be a watchdog for consumers. Eliminating it raises the stakes, potentially leaving everyday people—from construction workers to office managers—more vulnerable to financial scams and predatory practices. It also means there's one less cop on the beat, making it easier for financial institutions to get away with things that hurt consumers. While the bill itself is short and to-the-point, its impact could be massive, shifting the balance of power significantly away from consumers and toward financial institutions.