Senate Parliamentarian Says Budget Bill Can’t Cut CFPB Funding

As Congress continues to hammer out the details of the tax and spending package passed by the House in May, Senate Parliamentarian Elizabeth MacDonough recently ruled that the Republicans’ attempt to defund the Consumer Financial Protection Bureau (CFPB) in the bill violated Senate rules. Because the measure is being pushed through the reconciliation process, a special legislative procedure designed to expedite the passage of budget-related legislation by bypassing the usual 60-vote majority required to overcome a filibuster in the Senate, rules governing the reconciliation process dictate that the legislation can only include measures that impact the U.S. budget. Senate Republicans must find a different way to achieve their goal or remove those provisions if they want it to pass the bill with a simple majority vote.

Senator Tim Scott (R-S.C.), chairman of the Senate Banking Committee, said that he remains committed to cutting waste in the federal government. “The Banking Committee’s reconciliation provisions will delay the implementation of Section 1071 of Dodd-Frank, which reduces CFPB spending and protects the privacy and data of small business owners,” he said, according to PYMNTS.

MacDonough is a nonpartisan referee whose role is to ensure lawmakers adhere to proper legislative procedures. Reuters noted that provisions cutting the budget for the Office of Financial Research, cutting pay for Federal Reserve employees, and eliminating the Public Company Accounting Oversight Board were also determined unable to advance by majority support.

If Republicans choose to keep the provisions, they would need 60 votes to pass in the 100-seat Senate chamber, rather than a simple majority. Republicans currently hold 53 seats, and Democrats are expected to oppose these provisions.

Ranking member of the Senate Banking Committee Elizabeth Warren (D-Mass.) said in a press release that the proposals rejected by the parliamentarian are “dangerous” and “reckless.” “Democrats fought back, and we will keep fighting back against this ugly bill,” she said.

“These proposals are a reckless, dangerous attack on consumers and would lead to more Americans being tricked and trapped by giant financial institutions and put the stability of our entire financial system at risk — all to hand out tax breaks to billionaires,” Warren stated.