US House Republicans Propose CFPB Overhaul

Republicans in the US House of Representatives have introduced legislation that would give Congress greater control over the Consumer Financial Protection Bureau’s (CFPB) funding, while also narrowing parts of its supervisory authority and changing aspects of its rulemaking and enforcement framework, as reported by PYMNTS.

The Consumer Financial Protection Accountability and Reform Act of 2026, introduced as H.R. 10184 by Representatives Andy Barr and French Hill, would replace the CFPB’s current funding through the Federal Reserve with funding approved by Congress through the annual appropriations process. It would also create a dedicated inspector general and require cost-benefit analysis for new rules. In addition, the legislation would require periodic Office of Management and Budget reviews of major CFPB regulations, with the first review due no later than eight years after a rule takes effect. Hill, who chairs the House Financial Services Committee, said the bill would establish “durable guardrails” for the Bureau.

The legislation would raise the asset threshold for CFPB supervision of banks from $10 billion to $30 billion, with adjustments beginning in 2031, and allow eligible institutions above that threshold to elect to have their prudential regulator serve as their primary consumer-compliance supervisor. For nonbanks, it would replace “risks to consumers” with “substantial injury to consumers” under Section 1024 of the Consumer Financial Protection Act, require at least 90 days for a company to respond before being brought under supervision through the Bureau’s risk-based designation authority, and limit examinations to activities “directly related” to the product or service giving the CFPB jurisdiction.

The bill would also prohibit information obtained through the CFPB’s market-monitoring authority from being used in connection with an enforcement investigation, enforcement action, or supervisory examination.