DCUC Applauds Rep. Barr (R-KY) Introduction of Key Legislation - H.R.654 Transitions CFPB to Regular Appropriations Process

​WASHINGTON, D.C. – The Defense Credit Union Council (DCUC) applauds Representative Andy Barr (R-KY) for introducing new legislation (H.R. 654) that would subject the CFPB to the congressional appropriations process.

“We have consistently urged Congress to bring necessary reforms at the CFPB, especially in response to growing concerns about the agency's overreach,” said Jason Stverak, DCUC Chief Advocacy Officer. “This proposed legislation represents an important step toward establishing appropriate regulatory processes that enhance efficiency, ensure fairness, and support all financial institutions.”

DCUC’s letter sent last month outlined several concerns related to the CFPB’s regulatory processes and actions while providing recommendations for structural reform.

“DCUC believes that structural reforms to the CFPB are critical to ensuring its accountability, transparency, and balanced oversight of the financial sector. Specifically, we recommend:

1. Establishing a Five-Member Commission: Replacing the single-director leadership model with a bipartisan five-member commission would promote greater stability, continuity, and collaboration in CFPB policymaking. This structure, used successfully by other financial regulators, would mitigate abrupt policy swings and ensure diverse perspectives in decision-making.
   
2. Placing the CFPB Under the Congressional Appropriations Process: Currently, the CFPB’s funding bypasses congressional oversight by being tied to the Federal Reserve. Subjecting the agency to the appropriations process would enhance accountability and ensure Congress has a more direct role in overseeing how taxpayer resources are utilized. This change would also align the CFPB’s funding mechanism with other federal financial regulators…”

“We look forward to collaborating with Congressman Barr and his staff on this critical legislation and other initiatives that foster the growth and sustainability of the credit union industry,” said Stverak.

For more information, please contact Jason Stverak at [email protected] and visit dcuc.org/advocacy.