Congress Eyeing Options for Full Revamp of the CFPB
Posted by Ryan Fitzgerald on January 27, 2025

Late last week, we saw leaders in the newly sworn in 119th Congress take first steps toward statutorily overhauling the Consumer Financial Protection Bureau (CFPB).
Congressman Andy Barr (R-KY-6), Financial Institutions Subcommittee Chairman, introduced a bill (H.R. 654) that would rename the CFPB as the “Consumer Financial Empowerment Agency.” The bill would maintain the agency’s independent status but make it subject to the regular appropriations process and the oversight of Congress. The full language of the bill has not been published, but we have heard from Hill staff that Rep. Barr is reviewing every aspect of the original construct and mission directives that were included when the CFPB was created. He wants to establish specific Congressional oversight and sideboards to agency powers that can be established in an agency revamp. Mission creep in all federal agencies is under intense scrutiny by the new Trump Administration and Congressional leadership.
Since the beginning of the year several concepts on the reimagining or the complete shutdown of the CFPB have been floated by both the Administration and Members of Congress. We expect to see additional legislative measures being proposed in the weeks ahead. Additionally, the fact that President Trump has not moved to appoint a new director for the CFPB may lead some to believe that the Administration has a specific strategy on how they will approach the future of the bureau.
GoWest may have been trendsetters as discussions late last year pondered the concept of remaking the CFPB into the Consumer “Fraud” Protection Bureau, with the goal of shifting the focus of the Bureau to address the rapidly increasing concerns on the fraud and scam landscape, along with the Department of Justice and Treasury. In recent weeks, we have heard similar concepts from Administration leaders and Members of Congress. Moreover, the financial consulting firm, Cornerstone Advisors, has rolled out a report on making this exact innovative shift to reformulate the CFPB. The hope of this innovation would be to bring federal agencies together to address the growing and regular threat to the financial well-being of consumers, the health of the U.S. financial services landscape, and the overall security of our nation.
The GoWest Advocacy Team will continue to closely monitor this shifting landscape and keep credit unions in the loop on trends and discussions that are gaining traction.
Posted in Advocacy on the Move, Federal Advocacy.