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ARTICLE · 27 JUNE 2025

CFPB Budget Cuts Blocked By Senate Parliamentarian

Senate Parliamentarian Elizabeth MacDonough ruled that the Trump Administration and congressional Republicans cannot use the pending budget reconciliation bill to eliminate funding to the CFPB in a June 23, 2025, announcement.

United StatesFinance and Banking

Senate Parliamentarian Elizabeth MacDonough ruled that the Trump Administration and congressional Republicans cannot use the pending budget reconciliation bill to eliminate funding to the CFPB in a June 23, 2025, announcement.

Under Senate rules, the budget process can be used only for legislation primarily aimed at revenue and spending. As the budget reconciliation process is immune to a filibuster, it cannot be utilized to amend public policy. As Holland & Knight previously reported, the pending budget reconciliation bill passed by the House of Representatives included a provision aimed to eliminate nearly 70 percent of the CFPB's annual budget. MacDonough, whose role is to ensure legislative procedure and rules are followed by lawmakers, concluded that the CFPB budget cuts are not germane to matters of revenue and spending and, thus, cannot be included in the filibuster-proof reconciliation process under the Byrd Rule.

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