# What This Bill Does

This bill requires the Consumer Financial Protection Bureau (CFPB)—the federal agency that writes rules for banks, credit card companies, and other financial institutions—to show its work much more thoroughly before creating new regulations. Right now, the CFPB can issue rules with relatively limited explanation of why they're needed. This bill would force the agency to publish detailed cost-benefit analyses alongside any proposed rule, explaining both the good and bad effects of what they're proposing.

Specifically, the CFPB would have to explain why a new rule is necessary, why the private market or state governments can't solve the problem on their own, and whether the rule duplicates or conflicts with existing regulations. The agency would also need to calculate and describe all the costs the rule would impose—on banks, credit card companies, small businesses, and consumers—as well as the benefits. If the costs outweigh the benefits, the CFPB would have to justify why they're doing it anyway. The bill also requires the agency to identify alternative approaches and explain why they chose their preferred option instead.

**Who this affects:** This primarily impacts financial companies and small businesses that would have to comply with new CFPB rules, since they'll have more opportunity to challenge proposed regulations if the agency's analysis seems weak. Consumers might see slower rule-making since the CFPB will need to do more extensive analysis before proposing anything. The bill also requires the CFPB to consult with the Small Business Administration if a rule would increase costs for small businesses, potentially leading to modifications that reduce compliance burdens for smaller financial firms.

Transparency in CFPB Cost-Benefit Analysis Act

Loudermilk, Barry

Transparency in CFPB Cost-Benefit Analysis Act This bill sets forth information required to be included in a rulemaking made by the Consumer Financial Protection Bureau (CFPB). Specifically, the CFPB must publish a justification of the proposed rulemaking; a quantitative and qualitative assessment of all anticipated direct and indirect costs and benefits; alternatives to the proposed rulemaking; impacts on small businesses; and any assumptions, data, or studies used in preparing this information.