Last week, after the Office of Management and Budget released President Obama’s 2012 budget proposal, discussions arose around Washington D.C. about funding for various government bodies. Among them was the Consumer Financial Protection Bureau, which feared a provision proposed by House Republicans that would reduce funding for the CFPB by 40%, compared with the budget it had anticipated earlier.
The bill, HR 1, was passed in the house this week and would fund federal government operations from March 4 through the end of the fiscal year in September. The specific provision regarding the CFPB restricts funding to $80 million—compared with the anticipated budget of $143 million—for the bureau, which will be run by Elizabeth Warren, adviser to President Obama. Earlier this week, Warren announced the first of her staff team leaders on the CFPB.
The bill now goes to the Senate, which will have to act on the legislation by March 4. If it does not enact the bill by that time, Congress will have to pass a stop-gap spending measure in order to fund government operations.
Once the bureau is up and running, it will be able to draw up to $500 million annually, which some have speculated may still not be enough.
Written by Elizabeth Ecker