Senate Blocked: Trump’s Budget Bill Fails to Defund the CFPB
Washington's latest power play hits a wall—lawmakers can't weaponize the budget bill to gut consumer protections.
Here's why the CFPB survives another day.
Subheader: The legislative Hail Mary that fell short
Attempts to slip in a defunding clause got smacked down by procedural rules—turns out, even Trump-era tactics have limits. The Senate's hands are tied unless they find another backdoor (and let's be real, they're already drafting Plan B).
Subheader: Why Wall Street won't pop champagne yet
Bankers itching to ditch the 'pesky' consumer watchdog will need to wait—this round goes to the bureaucracy. But with lobbyists charging $1,500/hour to 'find solutions,' we give it three months before the next attack.
Closer: The CFPB lives to fight another day, proving even in 2025, some things are harder to kill than a meme stock.
Democrats plan to challenge more parts of the GOP bill
Democrats say they will continue to challenge many other parts of the bill as violating Senate rules. Among the disputed sections are measures to loosen regulations on short-barrel shotguns and firearm silencers and to pressure states to limit their own oversight of artificial intelligence.
“We will continue examining every provision in this Great Betrayal of a bill and will scrutinize it to the furthest extent,” said Senator Jeff Merkley, the top Democrat on the Senate Budget Committee.
The CFPB currently draws its funding directly from the Federal Reserve and can request up to 12 percent of the Fed’s profits. For years, Republicans have argued that making Congress set the bureau’s budget would make it more accountable.
Under the Trump administration, the CFPB has seen many of its enforcement actions halted, staff reductions proposed, and multiple legal challenges filed in federal courts.
Senator Tim Scott, who chairs the Senate Banking Committee and oversaw the drafting of the disputed provisions, said he would continue working with MacDonough but gave no details on next steps.
More rulings from the Senate’s nonpartisan referee are expected in the coming days as Republicans push to finalize their tax and spending priorities.
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