# Plain Language Summary: CFPB Transparency and Accountability Reform Act

This bill makes major structural changes to how the Consumer Financial Protection Bureau (CFPB) operates. Currently, the CFPB is run by a single Director appointed by the President. This bill would replace that with a five-member commission, similar to how the Federal Trade Commission works. At least two of these commissioners would need to come from the private sector (meaning they've worked for banks, credit card companies, or other financial businesses). No more than three commissioners could be from the same political party. The President would appoint all five commissioners with Senate approval, and they'd serve five-year terms. This change is significant because it shifts power away from a single leader to a group that must reach consensus on major decisions.

The bill also changes how the CFPB gets its money. Right now, the CFPB funds itself through the Federal Reserve without going through the normal congressional budget process. This bill would require Congress to approve the CFPB's budget like any other government agency. The bill creates an Inspector General position to investigate wrongdoing within the agency and requires the CFPB to conduct more detailed cost-benefit analyses before issuing new rules. It also requires the CFPB to consider impacts on small businesses more carefully when making regulations, and it establishes a whistleblower program to encourage CFPB employees to report problems internally.

For everyday consumers, these changes could mean the CFPB moves more slowly on new protections since decisions now require multiple commissioners to agree. The increased focus on business concerns might lead to fewer or less strict regulations on financial companies. However, the stronger oversight through congressional budgeting and an Inspector General could make the agency more accountable and transparent about how it spends money and makes decisions.

CFPB Transparency and Accountability Reform Act

Barr, Andy

CFPB Transparency and Accountability Reform Act This bill changes the structure, funding, and rulemaking procedures of the Consumer Financial Protection Bureau. The bill removes the bureau from the Federal Reserve System and reestablishes it as an independent agency. The bill also changes the leadership structure by establishing a five-person commission led by a chair rather than a director as under current law. The bill eliminates the bureau's ability to receive funding through transfers from the Federal Reserve and brings the bureau under the regular appropriations process. The bill also establishes a separate inspector general for the bureau. Currently, the bureau is under the supervision of the Federal Reserve's Inspector General. Additionally, the bill creates within the bureau the Office of Economic Analysis that must review all proposed and existing guidance, orders, rules, and regulations. In the course of a rulemaking, the office must publish an assessment of all anticipated direct and indirect costs and benefits of the proposed regulation and of any reasonable alternatives. As part of the required analysis under the Regulatory Flexibility Act, the bureau must describe the impact on small businesses of proposed and final rules and a justification for the rejection of any alternatives. Finally, the bill requires the bureau to provide awards to whistleblowers who report information resulting in monetary sanctions.