Spending Bill That Would Reform CFPB Advances

The House Appropriations subcommittee on financial services today passed its fiscal year 2017 spending bill for financial services, which was covered in Newsbytes yesterday and includes several ABA policy priorities. The bill would reform the Consumer Financial Protection Bureau by replacing the director with a bipartisan five-member commission and fund it through congressional appropriations, rather than directly from the Federal Reserve. It would also stop the CFPB’s rulemaking process limiting the usefulness of arbitration agreements.

The spending bill would also provide full funding for the Small Business Administration’s 7(a) and 504 business loan programs, as advocated by ABA. It also includes a measure changing the U.S. Bankruptcy Code to facilitate the orderly resolution of a failing financial firm.