White House Calls For CFPB Restructuring

The White House proposed significant restructuring of the Consumer Financial Protection Bureau ("CFPB").

In the "Major Savings and Reforms" section of its FY 2019 budget, the White House characterized the CFPB as an "independent agency with a single unaccountable director who is able to draw funding from the Federal Reserve without oversight from Congress." The administration's budget would subject the CFPB to discretionary appropriations beginning in 2020, rather than allowing unchecked access to the Federal Reserve, and to cap its transfers at $485 million. In addition, the White House criticized the agency's "unilateral" powers, and proposed to restrict the CFPB's enforcement authority. The White House called for a two-year implementation of the reforms in order to facilitate an "efficient transition."