WASHINGTON--America’s Credit Unions Friday wrote to Office of Management and Budget Director Russell Vought regarding the future plans for CFPB funding in light of Vought's decision not to draw funds from the Federal Reserve, and the reduction in the annual funding cap in the budget bill.
"While we commend the CFPB’s more reasonable and mission-centric focus, we are seeking further insight into how the Bureau envisions its operations and funding strategy moving forward under these new conditions," wrote Head of Regulatory Advocacy James Akin. "Specifically, we have a few questions about if and when the
CFPB will utilize additional funding and whether the recent budgetary limits will suffice for the Bureau’s important work:
- Future Funding Draws:
- Does the Bureau anticipate that it will need to take any future draws from the Federal Reserve’s funds during the remainder of this fiscal year or in FY 2026
- With the third-quarter FY25 draw already canceled and an ample reserve on hand, will the Bureau also forgo requesting the fourth-quarter transfer this year
- Looking ahead to FY 2026, will the CFPB resume periodic draws up to the new 6.5% cap, or will it continue relying on the existing balance for some time?
"In essence, we seek clarity on if and when the Bureau plans to request funding going forward, and what factors will determine such a decision. An understanding
of the timing and reasoning for any future funding requests would greatly help us and our member institutions anticipate the CFPB’s operational posture," Akin said.
Akin also noted that ACU is interested in understanding whether the 6.5% budget cap, potentially on the order of $300–400 million annually, will be sufficient to support the Bureau’s critical activities targeting wrongdoing in the marketplace, or if the CFPB foresees needing to seek supplemental funding (for example, via congressional appropriation) to cover any gaps.