On December 5, the Congressional Research Service (CRS) released a report analyzing the CFPB’s budget, funding trends, and related policy issues. The report reviewed the CFPB’s unique funding structure, which relies on quarterly transfers from the Fed subject to a statutory cap. The cap was recently reduced for FY2025 by new legislation, and the report noted that funding requests and spending have fluctuated over time, often reflecting changes in bureau leadership.

CRS highlighted recent developments under Acting Director Russell Vought, who has drawn down unobligated balances for FY2025 expenses and projects these funds will run out in early 2026. The report discussed an opinion from DOJ’s Office of Legal Counsel (covered by InfoBytes here), which Vought has cited in arguing that the CFPB cannot currently request new funds from the Fed while the central bank operates at a net loss — a disputed position in ongoing litigation (covered most recently by InfoBytes here).

CRS also detailed CFPB spending patterns, including growth in employee salaries and benefits, which the report contends accounts for most of the growth in the Bureau’s budget, compared to other financial regulators’ funding structures. The report discussed a 2024 Supreme Court decision upholding the CFPB’s funding mechanism (covered here) and outlined various legislative proposals, including reducing the funding cap, subjecting the CFPB to appropriations, and proposals to eliminate the agency outright.