CRS Reviews CFPB Funding Options
The Congressional Research Service ("CRS") reviewed the CFPB's funding trends and congressional proposals to alter its budgetary structure.
On funding trends the CRS highlighted the following:
- The CFPB's funding requests to the Federal Reserve increased from $161 million in FY2011 to $721 million in FY2023;
- Budgetary growth since 2014 has been concentrated in the Office of the Director, Consumer Response and Education, and Research, Markets, and Regulations, with growth primarily attributed to increased employee salaries and benefits rather than contractual services or other expenditures;
- From FY2011 to FY2017, the CFPB's budget grew at a higher rate than peer agencies, and from FY2020 to FY2023, the CFPB experienced above-average budget growth compared to other financial regulators; and
- From FY2017 to FY2020, budget growth slowed due to leadership changes and reduced hiring.
On legislative efforts to date, the CRS described policy options to modify the CFPB's funding structure, including:
- leaving the CFPB's Federal Reserve funding structure unchanged;
- making the CFPB a congressionally appropriated agency, similar to the SEC and CFTC and most other non-financial agencies;
- leaving the CFPB funding by the Federal Reserve unchanged, but modifying the CFPB's budget to, for example, require compliance with General Schedule salaries (thereby reducing employee compensation; prohibiting Federal Reserve transfers to the CFPB, if the Federal Reserve operates at a loss in the prior quarter; limiting the CFPB's unobligated balances; and revising the statutorily mandated cap that Congress has imposed on the CFPB.)