House Financial Services Committee Approves Proposed CFPB Reform Bill
On September 16, 2026, the House Financial Services Committee completed its consideration of H.R. 10184, the Consumer Financial Protection Accountability and Reform Act of 2026, and ordered the amended bill to be reported favorably to the House of Representatives by a 28-21 vote. The proposed bill would substantially alter the structure, funding, supervision, enforcement capabilities, and other aspects of the Consumer Financial Protection Bureau (CFPB). If the bill were to be passed, it would eliminate the CFPB’s existing funding mechanism through Federal Reserve System earnings and remove its ability to carry unused balances between fiscal years, subjecting it to the regular Congressional appropriations process for the first time. The CFPB’s supervisory reach over banks would also be restricted as the asset threshold for direct CFPB supervision and examination for consumer compliance would be increased from $10 billion to $30 billion, as well as allowing financial institutions above that threshold to elect to choose their prudential regulator as their supervisor and examiner instead of the CFPB. CFPB rulemaking would also be subject to new oversight, as the Director of the Office of Management and Budget would be required to conduct a retrospective review of CFPB rules to evaluate the costs and benefits of the rules; if the rules do not demonstrate net benefits the CFPB would be required to amend or repeal the rule within one year. It would also establish an Inspector General solely for the CFPB that would testify semiannually before the House Committee on Financial Services and Senate Committee on Banking, Housing, and Urban Affairs. These, and other proposed changes, according to remarks made by sponsoring Subcommittee Chair Andy Barr, are in response to the CFPB’s operation with “vague rules, limited accountability, and the ability to change the law through enforcement actions after the fact.” The bill remains subject to referrals to the House Judiciary, Small Business, and Oversight and Government Reform Committees, as well as possible consideration by the full House.
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