Defund the CFPB Act

# Defund the CFPB Act Summary **What the Bill Would Do** The Defund the CFPB Act would eliminate all federal funding for the Consumer Financial Protection Bureau (CFPB), effectively shutting down the agency. The CFPB is a government agency created in 2010 to regulate financial products and services, enforce consumer protection laws, and handle complaints about banks, credit card companies, and other financial institutions. **Who It Affects** This bill would impact consumers, financial institutions, and the financial services industry. Consumers rely on the CFPB for protections against deceptive lending practices, fraud, and unfair financial products.

Banks, credit card companies, and other lenders would face reduced regulatory oversight if the agency ceased operations. The roughly 1,600+ CFPB employees would lose their jobs. **Current Status** The bill was introduced by Senator Ted Cruz (R-TX) in the 119th Congress and is currently in committee, meaning it hasn't advanced to a full vote in either chamber. The bill faces significant obstacles to passage, including Democratic opposition and potential constitutional challenges regarding the CFPB's funding structure.