Despite the Supreme Court ruling back in May of 2024 that the funding process of the Consumer Financial Protection Bureau (CFPB) was, in fact, constitutional, Congress is nonetheless working to change the organization’s funding structure. Just this week, Republican Representative Andy Barr of Kentucky introduced the Taking Account of Bureaucrats’ Spending (TABS) Act, which would bring the CFPB under the standard appropriations process.

As quarterly transfers from the Federal Reserve fund the organization, it is not required to receive traditional Congressional approval on its funding and spending. This perceived lack of oversight has long since been a source of frustration for many, including credit union trade groups such as America’s Credit Unions, who feel the CFPB is getting away with overextending its authority and increasing its spending.

The Supreme Court felt otherwise, noting in its 7-2 ruling that the CPFB’s structure satisfied the Appropriations Clause and that subjecting the CFPB to Congressional approval would allow either the Senate or the House of Representatives to unilaterally withhold funding for the organization entirely through inaction.

In response to this ruling, the TABS bill would, in essence, give funding and spending authority of the CFPB over to Congress and therefore, allow the states and financial trade groups to have a larger influence on the organization. In a recent statement, America’s Credit Union’s President and CEO, Jim Nussle, thanked Representative Barr for bringing the legislation forward.

“We have long advocated for significant reforms to the CFPB, sounding the alarm to rein in actions that overstep its authority. The TABS Act would bring needed accountability, oversight, and transparency to the agency,” said Nussle. “We will continue to advocate for appropriate regulations that support a thriving credit union industry. America’s Credit Unions, together with leagues and credit unions, looks forward to working with lawmakers to bring needed reforms to the CFPB.”

This is not the first time the TABS Act has been introduced to Congress. The bill has been put forward nearly every year since 2016, with little to no progress made. However, supporters are hopeful that with the recent shift in administration—which has been outspoken in its disapproval of the CFPB—and with Republicans now in control of the House and the Senate, it’s more likely than in previous years that this bill could be passed.