On June 16, the House Financial Services and General Government Appropriations Subcommittee approved a nearly $20 billion FY 2012 spending bill (currently unnumbered). The measure is roughly $2 billion (nine percent) under current spending. The measure now awaits consideration by the full House Appropriations Committee. The Senate has not yet developed its version of the bill.
Included in the measure are provisions limiting the reach of the Dodd-Frank Wall Street Reform and Consumer Protection Act, including:
- A limit on mandatory funds for the new Consumer Financial Protection Bureau (CFPB) to $200 million and subjecting it to the appropriations process beginning in 2013
- Limiting funding for the Securities and Exchange Commission to $1.2 billion
- Requiring reports on “the costs and regulatory burdens” associated with the Dodd-Frank Act
Under the Dodd-Frank Act, the CFPB is housed within the Federal Reserve and receives funding directly from that agency, rather than from the appropriations process. Republicans have routinely criticized this arrangement arguing it does not allow for Congressional oversight.
Democrats have defended this arrangement. Senate Majority Whip Richard Durbin (D-IL) is considered the key architect of this provision. Mr. Durbin also serves as Chairman of the Senate House Financial Services and General Government Appropriations Subcommittee.
In its FY2012 budget proposal, the administration had requested $329 billion for the CFPB and $1.4 billion for the SEC.
Click here for more information on the House bill.
For additional information, members can contact Jason Boehlert at 703-558-0660 or jboehlert@mfghome.org.
