Cruz Leads GOP Effort to Defund CFPB

Senator Ted Cruz (R-TX) has introduced the Defund the CFPB Act, aiming to eliminate funding for the Consumer Financial Protection Bureau (CFPB) by capping its transfers from the Federal Reserve at $0. The CFPB, established by Democrats in response to the 2008 financial crisis, is viewed by Republicans as an unelected agency imposing excessive regulations on businesses. Cruz argues that the agency is an 'unchecked Obama-era executive arm' and its funding model lacks accountability. His proposal has gained support from other Republican senators, including John Barrasso and Rick Scott, and has a companion bill introduced in the House by Rep. Keith Self. Despite previous unsuccessful attempts to dismantle the CFPB, Cruz's team believes this effort may succeed by leveraging budget reconciliation to circumvent the typical Senate voting requirements. The CFPB has not commented on the new legislation, and its oversight remains a contentious topic in American politics.