# What the CFPB-IG Reform Act Does

Right now, the Consumer Financial Protection Bureau (CFPB)—the federal agency that oversees banks, credit card companies, and other financial institutions to protect consumers—doesn't have its own independent Inspector General. Instead, the Federal Reserve's Inspector General oversees both the Fed and the CFPB. This bill changes that by creating a separate Inspector General position specifically for the CFPB that would require Senate confirmation, just like other major government positions.

Think of an Inspector General as an internal watchdog. They investigate wrongdoing, audit finances, and make sure the agency is following the law and spending money properly. By having its own Inspector General, the CFPB would have dedicated oversight focused solely on its operations rather than sharing oversight with another agency. The bill requires the President to appoint this person within 60 days, and the Senate would need to approve them before they take office. The new Inspector General would have to appear before Congress twice a year to report on their findings and any problems they've discovered.

The bill also guarantees that the CFPB's Inspector General gets adequate funding—at least 2 percent of the bureau's annual budget must go to their office. Additionally, the CFPB's Inspector General would join a council of other financial inspectors general, giving them a seat at the table when discussing oversight issues across the financial system. For everyday people, this means there would be more focused, independent oversight of the agency responsible for protecting consumers in financial transactions, potentially leading to better accountability and more thorough investigations into any problems at the bureau.

CFPB–IG Reform Act of 2025

Meuser, Daniel

Bureau of Consumer Financial Protection-Inspector General Reform Act of 2025 or the CFPB-IG Act of 2025This bill establishes a separate Office of Inspector General for the Consumer Financial Protection Bureau (CFPB). Currently, such oversight of the CFPB is combined with the Office of Inspector General for the Board of Governors of the Federal Reserve System.