Senate Republicans Propose 46% Cut to CFPB Funding Under Big Beautiful Bill, Sparking Job Losses and Democratic Opposition

Senate Republicans have proposed a measure to reduce the Consumer Financial Protection Bureau's (CFPB) funding by approximately 46%, marking the first cut in the agency's budget cap in fifteen years. This move is part of President Donald Trump’s legislative initiative known as the "Big Beautiful Bill." The proposed budget cut is expected to result in hundreds of job losses at the CFPB, the federal agency responsible for protecting consumers in the financial sector. Republican supporters, including Senator Tim Scott, argue that the reduction will save $2 billion and promote fiscal responsibility without impairing the bureau's statutory functions. Conversely, Democrats have criticized the proposal, emphasizing the CFPB's role in returning $21 billion to 205 million Americans affected by financial misconduct and have introduced amendments to prevent the funding cuts. The debate over the CFPB's budget occurs amid broader concerns about cuts to social safety nets, as highlighted by recent budget shortfalls affecting programs such as SNAP caseworker funding in Massachusetts.