WASHINGTON—Efforts by Republicans to drastically cut funding for the CFPB and other financial oversight agencies violate Senate budget rules, the chamber’s nonpartisan parliamentarian ruled Friday—putting those provisions at risk in President Trump’s sweeping tax and spending package, Reuters reported.
Senate parliamentarian Elizabeth MacDonough determined that the proposal to effectively defund the CFPB cannot pass under reconciliation rules, which allow legislation to be approved by a simple majority in the Senate.
Other controversial provisions—such as slashing the budget for the Office of Financial Research, dissolving the Public Company Accounting Oversight Board, and reducing Federal Reserve staff salaries—were also ruled ineligible for inclusion under the fast-track process, according to Senate Budget Committee Democrats, Reuters said.
Republicans had sought to include the policy changes as part of the Senate version of Trump's One Big Beautiful Bill Act. If Republicans opt to keep those provisions, they would need 60 votes to pass in the 100-seat chamber, rather than the simple majority that other elements of Trump's tax and spending package would need under a complex budget process being invoked by Republicans to bypass Democratic opposition, Reuters said.
Republicans hold 53 seats in the Senate and Democrats are expected to oppose the provisions, Reuters noted.
The CFPB is funded directly by the Federal Reserve and can draw up to 12% of the Fed’s annual profits. Republicans have long argued the agency wields too much power and have repeatedly pushed to place its budget under congressional control, claiming it would increase oversight and accountability, Reuters added.