Protecting American Consumers Act

Key Points

• This bill would guarantee a minimum annual funding level for the Consumer Financial Protection Bureau (CFPB), the agency that protects consumers from unfair practices by banks, lenders, and credit card companies. The funding floor would be set at no less than 12% of the Federal Reserve's 2009 operating expenses.
• By tying the minimum to a fixed historical benchmark (the Fed's 2009 operating costs), the bill creates a permanent baseline that cannot be easily reduced through annual budget fights. This is designed to prevent future efforts to weaken the CFPB by starving it of resources.
• The bill amends the Consumer Financial Protection Act of 2010, which originally created the CFPB and set up its funding mechanism through the Federal Reserve rather than through congressional appropriations.
• The bill was introduced by Senator Warren with 10 Democratic co-sponsors and has been referred to the Senate Banking, Housing, and Urban Affairs Committee. As a bill with only Democratic sponsors in a Republican-controlled Senate, it faces significant political obstacles.