59–006 

114TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 2d Session 114–538 

TAKING ACCOUNT OF BUREAUCRATS’ SPENDING ACT OF 

2016 

MAY 6, 2016.—Committed to the Committee of the Whole House on the State of the 

Union and ordered to be printed 

Mr. HENSARLING, from the Committee on Financial Services, 

submitted the following 

R E P O R T 

together with 

MINORITY VIEWS 

[To accompany H.R. 1486] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on Financial Services, to whom was referred the 

bill (H.R. 1486) to amend the Consumer Financial Protection Act 

of 2010 to bring the Bureau of Consumer Financial Protection into 

the regular appropriations process, and for other purposes, having 

considered the same, report favorably thereon with an amendment 

and recommend that the bill as amended do pass. 

The amendment is as follows: 

Strike all after the enacting clause and insert the following: 

SECTION 1. SHORT TITLE. 

This Act may be cited as the ‘‘Taking Account of Bureaucrats’ Spending Act of 

2016’’ or the ‘‘TABS Act of 2016’’. 

SEC. 2. BRINGING THE BUREAU INTO THE REGULAR APPROPRIATIONS PROCESS. 

Section 1017 of the Consumer Financial Protection Act of 2010 (12 U.S.C. 5497) 

is amended— 

(1) in subsection (a)— 

(A) by amending the heading of such subsection to read as follows: 

‘‘BUDGET, FINANCIAL MANAGEMENT, AND AUDIT.—’’; 

(B) by striking paragraphs (1), (2), and (3); 

(C) by redesignating paragraphs (4) and (5) as paragraphs (1) and (2), respectively; and 

(D) by striking subparagraphs (E) and (F) of paragraph (1), as so redesignated; 

(2) by striking subsections (b) and (c); 


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(3) by redesignating subsections (d) and (e) as subsections (b) and (c), respectively; and 

(4) in subsection (c), as so redesignated— 

(A) by striking paragraphs (1), (2), and (3) and inserting the following: 

‘‘(1) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to be appropriated to the Bureau for fiscal year 2017 an amount equal to the aggregate 

amount of funds transferred by the Board of Governors to the Bureau during 

fiscal year 2015.’’; and 

(B) by redesignating paragraph (4) as paragraph (2). 

PURPOSE AND SUMMARY

Title X of the Dodd-Frank Wall Street Reform and Consumer 

Protection Act (P.L. 111–203) created the Bureau of Consumer Financial Protection (Bureau) as an independent agency housed within the Federal Reserve System, and charged it with regulating ‘‘the 

offering and provision of consumer financial products or services’’ 

under the federal consumer financial laws. Title X grants the Director of the Bureau the ‘‘general authority’’ to ‘‘prescribe rules and 

issue orders and guidance’’ to administer, enforce, and implement 

federal consumer financial laws. 

The Dodd-Frank Act authorizes the Bureau to fund itself outside 

the congressional appropriations process by drawing money from 

the Federal Reserve to the extent the Bureau’s Director deems necessary. The Federal Reserve does not oversee the agency or exercise any authority over it, but the Federal Reserve must transfer 

to the Bureau whatever funds its Director requests, up to the following fixed percentages of the Federal Reserve’s 2009 operating 

expenses: 

• 11 percent in fiscal year 2012, or $547.8 million; 

• 12 percent in fiscal year 2013, or $597.6 million; and 

• 12 percent each fiscal year thereafter, subject to annual adjustments for inflation. 

If they were not diverted from the Federal Reserve to the Bureau, these funds would otherwise be forwarded from the Federal 

Reserve to the Treasury as part of the federal fisc. 

Given that the Bureau’s funding is not appropriated by Congress, 

many observers have raised concerns about the lack of transparency in the Bureau’s funding and expenditures and Congress’s 

ability to exercise oversight of the Bureau. In light of these concerns, H.R. 1486 eliminates the direct funding of the Bureau by the 

Federal Reserve. Instead, it subjects the Bureau to the regular appropriations process; H.R. 1486 authorizes to be appropriated to 

the Bureau for fiscal year 2017 an amount equal to the aggregate 

amount of funds transferred by the Federal Reserve to the Bureau 

during fiscal year 2015. 

BACKGROUND AND NEED FOR LEGISLATION

The Bureau’s Director sets the Bureau’s budget each year. The 

budget is funded by a combination of: (1) the amount the Director 

actually requests from the Federal Reserve in a given fiscal year, 

and (2) unobligated balances brought forward from prior fiscal 

years. Unlike appropriations, which expire if unused, funds transferred to the Bureau by the Federal Reserve can be held unobligated for years and used to augment budgetary resources. 

For FY 2015, Director Richard Cordray set a Bureau budget of 

$582 million. He requested four transfers from the Federal Reserve 


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1Letter from Richard Cordray, Director of the Consumer Financial Protection Bureau, to William Mitchell, Chief Financial Officer of the Board of Governors of the Federal Reserve System 

(Jan. 26, 2016), available at http://files.consumerfinance.gov/f/201602_cfpb_transfer-request-let- ter_q2.pdf. 2Section 1012(c) of Dodd-Frank. 

totaling $485.1 million. But by bringing forward $139.5 million in 

unobligated funds from FY 2014, the Bureau had total budgetary 

resources available for FY 2015 of $654.4 million, which exceeded 

its maximum transfer request level of $619 million. By the end of 

FY 2015, the Bureau had spent approximately $559 million. 

Since its inception, the Bureau has grown rapidly. For its first 

full year of existence—FY 2012—the Bureau had a budget of 

$299.8 million and a full-time equivalent employee count of 831. In 

FY 2013, its budget grew to $541.4 million, with 1,335 employees. 

For FY 2016, its estimated budget is $605.9 million and 1,623 employees. For FY 2016, which ends September 30, 2016, the Bureau 

will have paid $300.2 million in salary and benefits, or average 

compensation of $184,966 per employee. 

To obtain funding, the Bureau’s Director simply sends a quarterly request letter to the Federal Reserve. In the most recent letter, for instance, Director Cordray stated: ‘‘I have determined that 

$159,900,000 is the amount necessary to carry out the authorities 

of the Bureau for FY 2016 Q2, and I request that the Board transfer this amount to the Bureau immediately.’’ 1

By law, the Bureau is autonomous from the Federal Reserve System; 2 the Federal Reserve is not permitted to review the Director’s 

fund transfer requests or approve the Bureau’s budget. Section 

1017(a)(2)(C) of the Dodd-Frank Act also prohibits the House and 

Senate Appropriations Committees from reviewing any of the funds 

obtained by the Bureau from the Federal Reserve. In addition, Section 1017(a)(4)(E) provides that the Director has no obligation to 

consult with or obtain the consent of the Office of Management and 

Budget regarding the Bureau’s budget. 

There are two main types of federal financial regulators: product 

regulators and prudential regulators. The principal function of 

product regulators is to protect consumers or investors from fraudulent or misleading products and services offered in the market, 

whereas the principal function of prudential regulators is to protect 

financial institutions and their insured deposits by ensuring their 

safe and sound operation. These different functions have given rise 

to different methods for funding these agencies. Where agency and 

industry interests are presumed to be aligned, as in prudential supervision, Congress generally funds agency activities through industry assessments. For example, the Office of the Comptroller of 

the Currency (OCC), Federal Deposit Insurance Corporation 

(FDIC), and National Credit Union Administration (NCUA) are 

funded this way. But where agency and industry interests are presumed not to be aligned, as in policing markets for force and fraud, 

Congress has generally funded agency activities through appropriations. For example, the Federal Trade Commission (FTC), Securities and Exchange Commission (SEC), Consumer Product Safety 

Commission (CPSC), and Commodity Futures Trading Commission 

(CFTC), are funded principally through Congressional appropriations. 


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The Bureau neither generates its own funding through assessments, nor is subject to the appropriations process. Its mission is 

clearly that of a product regulator rather than that of a prudential 

regulator. Accordingly, it should be funded through Congressional 

appropriations. 

HEARINGS

The Committee on Financial Services held hearings examining 

matters relating to H.R. 1486 on March 3, 2015, September 29, 

2015, and on March 16, 2016. 

COMMITTEE CONSIDERATION

The Committee on Financial Services met in open session on 

April 13, 2016, and ordered H.R. 1486 to be reported favorably to 

the House as amended by a recorded vote of 33 yeas to 20 nays (recorded vote no. FC–106, a quorum being present. Before the motion 

to report was offered, the Committee adopted an amendment in the 

nature of a substitute offered by Mr. Barr by voice vote. 

COMMITTEE VOTES

Clause 3(b) of rule XIII of the Rules of the House of Representatives requires the Committee to list the record votes on the motion 

to report legislation and amendments thereto. The sole recorded 

vote was on a motion by Chairman Hensarling to report the bill favorably to the House as amended. The motion was agreed to by a 

recorded vote of 33 yeas to 20 nays (Record vote no. FC–106), a 

quorum being present. 


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COMMITTEE OVERSIGHT FINDINGS

Pursuant to clause 3(c)(1) of rule XIII of the Rules of the House 

of Representatives, the findings and recommendations of the Committee based on oversight activities under clause 2(b)(1) of rule X 

of the Rules of the House of Representatives, are incorporated in 

the descriptive portions of this report. 

PERFORMANCE GOALS AND OBJECTIVES

Pursuant to clause 3(c)(4) of rule XIII of the Rules of the House 

of Representatives, the Committee states that H.R. 1486 will promote increased accountability by making the Bureau of Consumer 

Financial Protection subject to the Congressional appropriations 

process. 

NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY, AND TAX

EXPENDITURES

In compliance with clause 3(c)(2) of rule XIII of the Rules of the 

House of Representatives, the Committee adopts as its own the estimate of new budget authority, entitlement authority, or tax expenditures or revenues contained in the cost estimate prepared by 

the Director of the Congressional Budget Office pursuant to section 

402 of the Congressional Budget Act of 1974. 

COMMITTEE COST ESTIMATE

The Committee adopts as its own the cost estimate prepared by 

the Director of the Congressional Budget Office pursuant to section 

402 of the Congressional Budget Act of 1974. 

CONGRESSIONAL BUDGET OFFICE ESTIMATES

Pursuant to clause 3(c)(3) of rule XIII of the Rules of the House 

of Representatives, the following is the cost estimate provided by 

the Congressional Budget Office pursuant to section 402 of the 

Congressional Budget Act of 1974: 

U.S. CONGRESS, 

CONGRESSIONAL BUDGET OFFICE, 

Washington, DC, Revised April 21, 2016. 

Hon. JEB HENSARLING, 

Chairman, Committee on Financial Services, 

House of Representatives, Washington, DC. 

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for H.R. 1486, the Taking Account 

of Bureaucrats’ Spending Act of 2016. 

If you wish further details on this estimate, we will be pleased 

to provide them. The CBO staff contact is Stephen Rabent. 

Sincerely, 

KEITH HALL. 

Enclosure. 

H.R. 1486—Taking Account of Bureaucrats’ Spending Act of 2016 

Summary: Under current law, the Bureau of Consumer Financial 

Protection (CFPB) is permanently authorized to spend amounts 


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transferred from the Federal Reserve, subject to certain limits. 

H.R. 1486 would change the law so that spending for the CFPB 

would be subject to the annual appropriation process. The bill 

would authorize the appropriation of $485 million for fiscal year 

2017, the amount provided by the Federal Reserve in fiscal year 

2015. 

CBO estimates that enacting H.R. 1486 would reduce direct spending by $6.6 billion over the 2017–2026 period; therefore, payas-you-go procedures apply. (Enacting the bill would not affect revenues.) CBO estimates that implementing the bill would cost $485 

million over the 2017–2021 period, assuming appropriation of the 

specified amount. 

CBO estimates that enacting the legislation would not increase 

net direct spending or on-budget deficits in one or more of the four 

consecutive 10-year periods beginning in 2027. 

H.R. 1486 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act (UMRA) 

and would not affect the budgets of state, local, or tribal governments. 

Estimated cost to the Federal Government: The estimated budgetary effect of H.R. 1486 is shown in the following table. The costs 

of this legislation fall within budget function 370 (commerce and 

housing credit). 

By fiscal year, in millions of dollars— 

2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2017– 

2021 

2017– 

2026 

DECREASES IN DIRECT SPENDING 

Estimated 

Budget 

Authority ¥580 ¥638 ¥651 ¥664 ¥678 ¥692 ¥706 ¥720 ¥735 ¥750 ¥3,211 ¥6,814 

Estimated 

Outlays .. ¥377 ¥618 ¥646 ¥659 ¥673 ¥687 ¥701 ¥715 ¥730 ¥745 ¥2,973 ¥6,551 

INCREASES IN SPENDING SUBJECT TO APPROPRIATION 

Authorization Level 485 0 0 0 0 0 0 0 0 0 485 485 

Estimated 

Outlays .. 315 170 0 0 0 0 0 0 0 0 485 485 

Basis of estimate: For this estimate, CBO assumes that the bill 

will be enacted near the beginning of fiscal year 2017, that the authorized amount will be appropriated in 2017, and that spending 

will follow historical patterns for operations of the CFPB. 

The Dodd-Frank Wall Street Reform and Consumer Financial 

Protection Act established the CFPB as an independent agency 

that is authorized to spend amounts from the Federal Reserve. 

H.R. 1486 would not affect the amount of federal revenues received 

by the Federal Reserve, but it would end CFPB’s authority to 

spend those amounts. The CFPB’s budget is expected to total $565 

million (net of the effects of sequestration) in 2016. 

Direct Spending 

H.R. 1486 would terminate the permanent authority for the 

CFPB to be funded through transfers from the Federal Reserve. 

Based on information from the agency, CBO estimates that enactVerDate Sep 11 2014 05:33 May 07, 2016 Jkt 059006 PO 00000 Frm 00007 Fmt 6659 Sfmt 6602 E:\HR\OC\HR538.XXX HR538

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ing that change would reduce direct spending by about $6.6 billion 

over the 2017–2026 period. 

Spending Subject to Appropriation 

H.R. 1486 would authorize an appropriation for CFPB in 2017 equal to the $485 million transferred to the CFPB by the Federal 

Reserve in 2015. CBO has not estimated any authorizations for 

years after 2017 because H.R. 1486 would only authorize appropriations for the CFPB in 2017. However, CBO expects that operating the CFPB from 2018 through 2026 would cost between $5 billion and $6 billion, assuming the CFPB continues its current activities and appropriations are provided each year. 

Pay-As-You-Go considerations: The Statutory Pay-As-You-Go Act 

of 2010 establishes budget-reporting and enforcement procedures 

for legislation affecting direct spending or revenues. The net 

changes in outlays that are subject to those pay-as-you-go procedures are shown in the following table. 


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CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR H.R. 1486, AS ORDERED REPORTED BY THE HOUSE COMMITTEE ON FINANCIAL SERVICES ON APRIL 13, 2016 

By fiscal year, in millions of dollars— 

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2016– 2021 2016– 2026 

NET DECREASE IN THE DEFICIT 

Statutory Pay-As-You-Go Impact ............................................................................................... 0 ¥377 ¥618 ¥646 ¥659 ¥673 ¥687 ¥701 ¥715 ¥730 ¥745 ¥2,973 ¥6,551 


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Increase in long-term direct spending and deficits: CBO estimates that enacting the legislation would not increase net direct 

spending or on-budget deficits in any of the four consecutive 10- 

year periods beginning in 2027. 

Intergovernmental and private-sector impact: H.R. 1486 contains 

no intergovernmental or private-sector mandates as defined in 

UMRA and would not affect the budgets of state, local, or tribal 

governments. 

Previous estimate: This estimate corrects a typographical error 

in the cost estimate CBO transmitted for the same bill on April 20, 

2016. This version makes clear on page one that implementing the 

bill would cost $485 million over the 2017–2021 period, assuming 

appropriation of the specified amount. That correction makes the 

reference to estimated discretionary costs consistent with other references to those costs in the estimate. 

Estimate prepared by: Federal Costs: Stephen Rabent and Kathleen Gramp; Impact on State, Local, and Tribal Governments: Rachel Austin; Impact on the Private Sector: Logan Smith. 

Estimate approved by: H. Samuel Papenfuss, Deputy Assistant 

Director for Budget Analysis. 

FEDERAL MANDATES STATEMENT

The Committee adopts as its own the estimate of Federal mandates prepared by the Director of the Congressional Budget Office 

pursuant to section 423 of the Unfunded Mandates Reform Act. 

ADVISORY COMMITTEE STATEMENT

No advisory committees within the meaning of section 5(b) of the 

Federal Advisory Committee Act were created by this legislation. 

APPLICABILITY TO LEGISLATIVE BRANCH

The Committee finds that the legislation does not relate to the 

terms and conditions of employment or access to public services or 

accommodations within the meaning of the section 102(b)(3) of the 

Congressional Accountability Act. 

EARMARK IDENTIFICATION

H.R. 1486 does not contain any congressional earmarks, limited 

tax benefits, or limited tariff benefits as defined in clause 9 of rule 

XXI. 

DUPLICATION OF FEDERAL PROGRAMS

Pursuant to section 3(g) of H. Res. 5, 114th Cong. (2015), the 

Committee states that no provision of H.R. 1486 establishes or reauthorizes a program of the Federal Government known to be duplicative of another Federal program, a program that was included 

in any report from the Government Accountability Office to Congress pursuant to section 21 of Public Law 111–139, or a program 

related to a program identified in the most recent Catalog of Federal Domestic Assistance. 


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DISCLOSURE OF DIRECTED RULEMAKING

Pursuant to section 3(i) of H. Res. 5, 114th Cong. (2015), the 

Committee states that H.R. 1486 contains no directed rulemaking. 

SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION

Section 1. Short title 

This Section cites H.R. 1486 as the ‘‘Taking Account of Bureaucrats’ Spending Act of 2016’’. 

Section 2. Bringing the Bureau into the regular appropriations 

process 

This section amends the Dodd-Frank Act to subject the Bureau 

to the congressional appropriations process. In addition, this section authorizes to be appropriated to the Bureau for Fiscal Year 

2017 an amount equal to the aggregate amount of funds transferred by the Board of Governors of the Federal Reserve System to 

the Bureau during fiscal year 2015. 

CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

In compliance with clause 3(e) of rule XIII of the Rules of the 

House of Representatives, changes in existing law made by the bill, 

as reported, are shown as follows (existing law proposed to be omitted is enclosed in black brackets, new matter is printed in italic, 

and existing law in which no change is proposed is shown in 

roman): 

CONSUMER FINANCIAL PROTECTION ACT OF 2010 

TITLE X—BUREAU OF CONSUMER 

FINANCIAL PROTECTION 

* * * * * * * 

Subtitle A—Bureau of Consumer Financial 

Protection 

* * * * * * * 

SEC. 1017. FUNDING; PENALTIES AND FINES. 

(a) øTRANSFER OF FUNDS FROM BOARD OF GOVERNORS¿ BUDGET, 

FINANCIAL MANAGEMENT, AND AUDIT.— 

ø(1) IN GENERAL.—Each year (or quarter of such year), beginning on the designated transfer date, and each quarter thereafter, the Board of Governors shall transfer to the Bureau from 

the combined earnings of the Federal Reserve System, the 

amount determined by the Director to be reasonably necessary 

to carry out the authorities of the Bureau under Federal consumer financial law, taking into account such other sums made 

available to the Bureau from the preceding year (or quarter of 

such year). 

ø(2) FUNDING CAP.— 


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ø(A) IN GENERAL.—Notwithstanding paragraph (1), and 

in accordance with this paragraph, the amount that shall 

be transferred to the Bureau in each fiscal year shall not 

exceed a fixed percentage of the total operating expenses 

of the Federal Reserve System, as reported in the Annual 

Report, 2009, of the Board of Governors, equal to— 

ø(i) 10 percent of such expenses in fiscal year 2011; 

ø(ii) 11 percent of such expenses in fiscal year 2012; 

and 

ø(iii) 12 percent of such expenses in fiscal year 2013, 

and in each year thereafter. 

ø(B) ADJUSTMENT OF AMOUNT.—The dollar amount referred to in subparagraph (A)(iii) shall be adjusted annually, using the percent increase, if any, in the employment 

cost index for total compensation for State and local government workers published by the Federal Government, or 

the successor index thereto, for the 12-month period ending on September 30 of the year preceding the transfer. 

ø(C) REVIEWABILITY.—Notwithstanding any other provision in this title, the funds derived from the Federal Reserve System pursuant to this subsection shall not be subject to review by the Committees on Appropriations of the 

House of Representatives and the Senate. 

ø(3) TRANSITION PERIOD.—Beginning on the date of enactment of this Act and until the designated transfer date, the 

Board of Governors shall transfer to the Bureau the amount 

estimated by the Secretary needed to carry out the authorities 

granted to the Bureau under Federal consumer financial law, 

from the date of enactment of this Act until the designated 

transfer date.¿ 

ø(4)¿ (1) BUDGET AND FINANCIAL MANAGEMENT.— 

(A) FINANCIAL OPERATING PLANS AND FORECASTS.—The 

Director shall provide to the Director of the Office of Management and Budget copies of the financial operating 

plans and forecasts of the Director, as prepared by the Director in the ordinary course of the operations of the Bureau, and copies of the quarterly reports of the financial 

condition and results of operations of the Bureau, as prepared by the Director in the ordinary course of the operations of the Bureau. 

(B) FINANCIAL STATEMENTS.—The Bureau shall prepare 

annually a statement of— 

(i) assets and liabilities and surplus or deficit; 

(ii) income and expenses; and 

(iii) sources and application of funds. 

(C) FINANCIAL MANAGEMENT SYSTEMS.—The Bureau 

shall implement and maintain financial management systems that comply substantially with Federal financial 

management systems requirements and applicable Federal 

accounting standards. 

(D) ASSERTION OF INTERNAL CONTROLS.—The Director 

shall provide to the Comptroller General of the United 

States an assertion as to the effectiveness of the internal 

controls that apply to financial reporting by the Bureau, 


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using the standards established in section 3512(c) of title 

31, United States Code. 

ø(E) RULE OF CONSTRUCTION.—This subsection may not 

be construed as implying any obligation on the part of the 

Director to consult with or obtain the consent or approval 

of the Director of the Office of Management and Budget 

with respect to any report, plan, forecast, or other information referred to in subparagraph (A) or any jurisdiction or 

oversight over the affairs or operations of the Bureau. 

ø(F) FINANCIAL STATEMENTS.—The financial statements 

of the Bureau shall not be consolidated with the financial 

statements of either the Board of Governors or the Federal 

Reserve System.¿ 

ø(5)¿ (2) AUDIT OF THE BUREAU.— 

(A) IN GENERAL.—The Comptroller General shall annually audit the financial transactions of the Bureau in accordance with the United States generally accepted government auditing standards, as may be prescribed by the 

Comptroller General of the United States. The audit shall 

be conducted at the place or places where accounts of the 

Bureau are normally kept. The representatives of the Government Accountability Office shall have access to the personnel and to all books, accounts, documents, papers, 

records (including electronic records), reports, files, and all 

other papers, automated data, things, or property belonging to or under the control of or used or employed by the 

Bureau pertaining to its financial transactions and necessary to facilitate the audit, and such representatives 

shall be afforded full facilities for verifying transactions 

with the balances or securities held by depositories, fiscal 

agents, and custodians. All such books, accounts, documents, records, reports, files, papers, and property of the 

Bureau shall remain in possession and custody of the Bureau. The Comptroller General may obtain and duplicate 

any such books, accounts, documents, records, working papers, automated data and files, or other information relevant to such audit without cost to the Comptroller General, and the right of access of the Comptroller General to 

such information shall be enforceable pursuant to section 

716(c) of title 31, United States Code. 

(B) REPORT.—The Comptroller General shall submit to 

the Congress a report of each annual audit conducted 

under this subsection. The report to the Congress shall set 

forth the scope of the audit and shall include the statement of assets and liabilities and surplus or deficit, the 

statement of income and expenses, the statement of 

sources and application of funds, and such comments and 

information as may be deemed necessary to inform Congress of the financial operations and condition of the Bureau, together with such recommendations with respect 

thereto as the Comptroller General may deem advisable. A 

copy of each report shall be furnished to the President and 

to the Bureau at the time submitted to the Congress. 

(C) ASSISTANCE AND COSTS.—For the purpose of conducting an audit under this subsection, the Comptroller 


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General may, in the discretion of the Comptroller General, 

employ by contract, without regard to section 3709 of the 

Revised Statutes of the United States (41 U.S.C. 5), professional services of firms and organizations of certified public accountants for temporary periods or for special purposes. Upon the request of the Comptroller General, the 

Director of the Bureau shall transfer to the Government 

Accountability Office from funds available, the amount requested by the Comptroller General to cover the full costs 

of any audit and report conducted by the Comptroller General. The Comptroller General shall credit funds transferred to the account established for salaries and expenses 

of the Government Accountability Office, and such amount 

shall be available upon receipt and without fiscal year limitation to cover the full costs of the audit and report. 

ø(b) CONSUMER FINANCIAL PROTECTION FUND.— 

ø(1) SEPARATE FUND IN FEDERAL RESERVE ESTABLISHED.— 

There is established in the Federal Reserve a separate fund, to 

be known as the ‘‘Bureau of Consumer Financial Protection 

Fund’’ (referred to in this section as the ‘‘Bureau Fund’’). The 

Bureau Fund shall be maintained and established at a Federal 

reserve bank, in accordance with such requirements as the 

Board of Governors may impose. 

ø(2) FUND RECEIPTS.—All amounts transferred to the Bureau 

under subsection (a) shall be deposited into the Bureau Fund. 

ø(3) INVESTMENT AUTHORITY.— 

ø(A) AMOUNTS IN BUREAU FUND MAY BE INVESTED.—The 

Bureau may request the Board of Governors to direct the 

investment of the portion of the Bureau Fund that is not, 

in the judgment of the Bureau, required to meet the current needs of the Bureau. 

ø(B) ELIGIBLE INVESTMENTS.—Investments authorized by 

this paragraph shall be made in obligations of the United 

States or obligations that are guaranteed as to principal 

and interest by the United States, with maturities suitable 

to the needs of the Bureau Fund, as determined by the Bureau. 

ø(C) INTEREST AND PROCEEDS CREDITED.—The interest 

on, and the proceeds from the sale or redemption of, any 

obligations held in the Bureau Fund shall be credited to 

the Bureau Fund. 

ø(c) USE OF FUNDS.— 

ø(1) IN GENERAL.—Funds obtained by, transferred to, or 

credited to the Bureau Fund shall be immediately available to 

the Bureau and under the control of the Director, and shall remain available until expended, to pay the expenses of the Bureau in carrying out its duties and responsibilities. The compensation of the Director and other employees of the Bureau 

and all other expenses thereof may be paid from, obtained by, 

transferred to, or credited to the Bureau Fund under this section. 

ø(2) FUNDS THAT ARE NOT GOVERNMENT FUNDS.—Funds obtained by or transferred to the Bureau Fund shall not be construed to be Government funds or appropriated monies. 


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ø(3) AMOUNTS NOT SUBJECT TO APPORTIONMENT.—Notwithstanding any other provision of law, amounts in the Bureau 

Fund and in the Civil Penalty Fund established under subsection (d) shall not be subject to apportionment for purposes 

of chapter 15 of title 31, United States Code, or under any 

other authority.¿ 

ø(d)¿ (b) PENALTIES AND FINES.— (1) ESTABLISHMENT OF VICTIMS RELIEF FUND.—There is established in the Federal Reserve a separate fund, to be known 

as the ‘‘Consumer Financial Civil Penalty Fund’’ (referred to in 

this section as the ‘‘Civil Penalty Fund’’). The Civil Penalty 

Fund shall be maintained and established at a Federal reserve 

bank, in accordance with such requirements as the Board of 

Governors may impose. If the Bureau obtains a civil penalty 

against any person in any judicial or administrative action 

under Federal consumer financial laws, the Bureau shall deposit into the Civil Penalty Fund, the amount of the penalty 

collected. 

(2) PAYMENT TO VICTIMS.—Amounts in the Civil Penalty 

Fund shall be available to the Bureau, without fiscal year limitation, for payments to the victims of activities for which civil 

penalties have been imposed under the Federal consumer financial laws. To the extent that such victims cannot be located 

or such payments are otherwise not practicable, the Bureau 

may use such funds for the purpose of consumer education and 

financial literacy programs. 

ø(e)¿ (c) AUTHORIZATION OF APPROPRIATIONS; ANNUAL REPORT.— ø(1) DETERMINATION REGARDING NEED FOR APPROPRIATED

FUNDS.— 

ø(A) IN GENERAL.—The Director is authorized to determine that sums available to the Bureau under this section 

will not be sufficient to carry out the authorities of the Bureau under Federal consumer financial law for the upcoming year. 

ø(B) REPORT REQUIRED.—When making a determination 

under subparagraph (A), the Director shall prepare a report regarding the funding of the Bureau, including the assets and liabilities of the Bureau, and the extent to which 

the funding needs of the Bureau are anticipated to exceed 

the level of the amount set forth in subsection (a)(2). The 

Director shall submit the report to the President and to 

the Committee on Appropriations of the Senate and the 

Committee on Appropriations of the House of Representatives. 

ø(2) AUTHORIZATION OF APPROPRIATIONS.—If the Director 

makes the determination and submits the report pursuant to 

paragraph (1), there are hereby authorized to be appropriated 

to the Bureau, for the purposes of carrying out the authorities 

granted in Federal consumer financial law, $200,000,000 for 

each of fiscal years 2010, 2011, 2012, 2013, and 2014. 

ø(3) APPORTIONMENT.—Notwithstanding any other provision 

of law, the amounts in paragraph (2) shall be subject to apportionment under section 1517 of title 31, United States Code, 

and restrictions that generally apply to the use of appropriated 

funds in title 31, United States Code, and other laws.¿ 


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(1) AUTHORIZATION OF APPROPRIATIONS.—There is authorized 

to be appropriated to the Bureau for fiscal year 2017 an amount 

equal to the aggregate amount of funds transferred by the 

Board of Governors to the Bureau during fiscal year 2015. 

ø(4)¿ (2) ANNUAL REPORT.—The Director shall prepare and 

submit a report, on an annual basis, to the Committee on Appropriations of the Senate and the Committee on Appropriations of the House of Representatives regarding the financial 

operating plans and forecasts of the Director, the financial condition and results of operations of the Bureau, and the sources 

and application of funds of the Bureau, including any funds appropriated in accordance with this subsection. 

* * * * * * * 


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MINORITY VIEWS 

H.R. 1486 would subject the Consumer Financial Protection Bureau (CFPB or Bureau) to the Congressional appropriations process, removing the independence necessary for the agency to act aggressively on behalf of American consumers and opening the door 

for the agency’s opponents to shut it down once and for all. 

Prior to the Financial Crisis of 2008, federal banking regulators 

who shared consumer protection duties failed to adequately monitor consumer markets for abuses. This lack of supervision laid the 

groundwork for a financial catastrophe built on predatory mortgage 

loans that would eventually threaten the worldwide economy, resulting in millions of foreclosures, trillions in lost wealth and economic growth, and devastating unemployment among America’s 

working class. 

In addition to reining in the financial institutions that acted so 

recklessly, the Dodd-Frank Act established a new independent 

agency with the sole responsibility to monitor consumer markets 

and ensuring safety and fairness in access to consumer credit products. While the Consumer Financial Protection Bureau (CFPB) 

faces a number of constraints on its authority, Congress provided 

the Bureau with an independent stream of funding insulated from 

powerful financial and political interests, similar to those of other 

regulators charged with monitoring financial markets. 

The CFPB is the only agency whose funding is subject to a statutory cap. While other agencies may raise whatever revenue necessary to cover their operating expenses, the CFPB is bound by a 

statutory limit on its expenditures. 

The CFPB is the only agency whose rules are subject to a veto 

by a vote of the other independent regulators. By a two-thirds 

agreement, the Financial Stability Oversight Council can overturn 

CFPB rulemakings. 

The CFPB faces a yearly audit from the Government Accountability Office, required by the Dodd-Frank Act. 

The CFPB is the only banking regulator required to convene a 

Small Business Regulatory Enforcement panel prior to engaging in 

rulemakings in its jurisdiction. This ensures that the CFPB is accountable to small businesses and community financial institutions 

when exercising its regulatory authority. 

Finally, the Majority claims that putting the CFPB on appropriations will increase accountability, when in fact their plan is to 

starve the agency of funding and eliminate it for good. In 2013 

when Republicans passed similar legislation, they claimed putting 

the CFPB on appropriations would save taxpayers $5.4 billion—but 

this claim could only be true if Congress eliminated funding for all 

CFPB activities in CBO’s ten-year budget window. 

For the first time in history, the American consumer has a cop 

on the beat looking out for their interests in the consumer markets. 


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Republicans, who did not support the creation of the Bureau, who 

attempted to stymie it by preventing a Director from being confirmed by the Senate, and who have objected to nearly every one 

of its attempts at regulating consumer markets, want to use the 

appropriations process to leave the consumer beat unsupervised. 

For these reasons, the Minority strongly opposed passage of H.R. 

1486. 

MAXINE WATERS. ED PERLMUTTER. RUBE ́ N HINOJOSA. 

Æ 


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