House Republican appropriators on Wednesday unveiled a FY2017 Financial Services spending plan that incorporates many provisions of the Financial CHOICE Act, including plans to make the NCUA and the CFPB subject to the appropriations process.
The Financial Services Subcommittee is scheduled to mark up the bill Thursday afternoon.
“Our financial system thrives on stability, and this bill provides the funding necessary for federal regulators to do their jobs in a timely and appropriate manner, while stopping burdensome regulations before they can damage our economy irreparably,” House Appropriations Chairman Rodney Frelinghuysen (R-N.J.) said.
In addition to the making the agencies subject to appropriations, the spending measure also incorporates many provisions of H.R. 10, the Dodd-Frank overhaul bill that has passed the House.
The Senate is unlikely to consider H.R. 10, since Banking Chairman Mike Crapo (R-Id.) has said he wants to craft a regulatory overhaul measure on a bipartisan basis, working with his ranking Democrat, Sherrod Brown of Ohio.
However, the Senate will have to consider the Financial Services appropriations measure, even if it is combined into an omnibus spending measure or a Continuing Resolution.
In the past, the Senate has rejected changes to the CFPB when it considered appropriations bill.
Indeed, on Monday, Senate Democratic leaders sent a letter to Senate GOP leaders saying they would oppose any effort to attach “poison pill” policy riders, including provisions governing consumer protection to the annual spending bills.
Among other things, the House spending measure would:
- Eliminate the CFPB’s supervisory powers;
- Eliminate the CFPB’s power to issue final rules governing payday lending;
- Eliminate the CFPB’s power to issue final regulations governing mandatory arbitration agreements;
- Repeal the CFPB’s power to take action based on Unfair, Deceptive, Abusive Acts or Practices;
- Require financial regulators to better tailor rules based on the risk profile and business model of the financial institution.
