Us Congress House Bill HB654

Us Congress 2025-2026 Regular Session

• Introduced: 1/23/25
• Refer: 1/23/25

Caption

Taking Account of Bureaucrats' Spending Act of 2025 or the TABS Act of 2025 This bill restructures the Consumer Financial Protection Bureau and renames it as the Consumer Financial Empowerment Agency. The new agency is established as an independent agency outside of the Federal Reserve System.The bill also changes the funding structure of the agency by prohibiting the transfer of funds to the agency from the Federal Reserve System and by authorizing congressional appropriations for FY2026-FY2027.

Impact

The legislative changes outlined in HB654 will significantly impact existing state and federal financial regulations. By rebranding the Bureau to the Consumer Financial Empowerment Agency, the bill aims to ensure that the new agency is better positioned to address consumer issues, possibly leading to more robust protection regulations. The shift to an independent agency structure is expected to change operational dynamics, with potential implications on how financial products are regulated and consumer complaints are handled across various platforms. Additionally, the amendment to the funding process is designed to enhance fiscal responsibility, ensuring that taxpayer dollars are managed with more scrutiny.

Summary

House Bill 654, also known as the 'Taking Account of Bureaucrats’ Spending Act of 2025' or the 'TABS Act of 2025', proposes to transform the Bureau of Consumer Financial Protection into an independent agency called the Consumer Financial Empowerment Agency. This change is aimed at enhancing the accountability and operational transparency of the Bureau by subjecting it to the regular appropriations process, thereby giving Congress more oversight over its funding and expenditure decisions. The bill seeks to clearly delineate the roles and responsibilities of the new Agency compared to its predecessor, promoting consumer financial empowerment under more direct governmental oversight.

Contention

The transition from the Bureau to the Consumer Financial Empowerment Agency has been met with mixed reactions among lawmakers and consumer advocacy groups. Proponents argue that creating an independent agency will enhance budgeting transparency and provide a stronger framework for protecting consumers, particularly in regulating mortgages and credit options. However, critics express concern that this transition may dilute the Bureau's mission, potentially leading to less stringent oversight of financial institutions, which could, in turn, risk consumer financial protections already established. This ongoing debate reflects broader tensions between enhancing agency accountability and maintaining sufficient oversight to protect consumer interests.

Congress_id

119-HR-654

Policy_area

Finance and Financial Sector

Introduced_date

2025-01-23