WASHINGTON—As lawmakers edge closer to finalizing the budget reconciliation package, one of the most closely watched elements—particularly by the credit union industry—is the future scope and scale of the Consumer Financial Protection Bureau.
According to Carrie Hunt, chief advocacy officer at America’s Credit Unions, the evolving structure and funding of the CFPB could result in a leaner, more narrowly focused regulator—but not one without enforcement power.
CFPB Funding Trimmed, Oversight Tightened
“One key difference we've been tracking closely (between the House and Senate versions of the budget bill) is the CFPB,” said Hunt. “The future of the Bureau is of utmost interest to our members.”
While both the House and Senate versions of the budget bill differ in their specific approach, both would limit the CFPB’s access to automatic funding from the Federal Reserve. Instead, the Bureau would need to seek more of its funding through the congressional appropriations process. That’s a move long supported by credit union advocates, who argue that greater oversight and transparency is needed for such a powerful agency.
“This introduces a layer of accountability that hasn’t existed before,” Hunt noted. “It’s not about weakening consumer protection, but ensuring government efficiency and avoiding regulatory overreach.”
A Leaner Bureau Ahead—But Not Powerless
As for whether the CFPB will shrink or grow under the coming legislation, Hunt believes a downsized version is likely—though not to the bare-bones levels seen in recent months.
“We do expect the CFPB to rebuild some of its staffing,” she said. “But the footprint will remain smaller than in the past, and its directives may increasingly focus on previously unregulated actors, with some issues potentially being handled at the state level.”
There are also broader policy shifts in motion, including ongoing rule repeals and adjustments to enforcement priorities, Hunt reminded. These, combined with leadership uncertainty at the Bureau, mean the CFPB’s direction in the coming months will remain fluid—and a key area of advocacy for America’s Credit Unions.
For Credit Unions Over $10B: Compliance Still Counts
For credit unions with more than $10 billion in assets, the message is clear: the rules still apply, Hunt explained.
“Unless a rule is formally repealed, credit unions are still expected to comply—even if examinations have slowed or paused,” Hunt explained. “And most regulations are tied directly to statutory authority. As long as the statute stands, so does the obligation.”
While the industry doesn’t expect credit unions to be the CFPB’s top enforcement priority in the near term, Hunt said they should anticipate a gradual return to a more normalized examination process—albeit one from a “more streamlined, less onerous CFPB.”