House Bill Would Rewrite CFPB Supervision and Enforcement Rules

The Consumer Financial Protection Accountability and Reform Act of 2026 was introduced on August 31, 2026, by Reps. Andy Barr of Kentucky and French Hill of Arkansas. The bipartisan bill seeks to overhaul the Consumer Financial Protection Bureau's (CFPB) governance, legal standards, consumer products, supervision, and enforcement procedures. Financial Services Committee Chair Hill emphasized the legislation's goal to establish "durable guardrails" for the CFPB.

The proposed changes target various aspects of the CFPB. First, the bureau would be placed within the regular congressional appropriations process, replacing its current funding mechanism. Additionally, a dedicated CFPB inspector general would be established, and the Civil Penalty Fund's handling of remaining funds after victim payments would be altered.

Regarding rulemaking, the CFPB would have to conduct cost-benefit analyses considering factors like compliance costs, competition, small businesses, credit availability, and consumer financial product pricing. The Office of Management and Budget would conduct periodic reviews of major CFPB regulations, with the inaugural review scheduled eight years after a rule's implementation.

The bill imposes stricter requirements on the CFPB's supervision process. The threshold for bank supervision increases from $10 billion to $30 billion, with adjustments starting in 2031 based on nominal U.S. gross domestic product. Banks and credit unions above the threshold may opt for supervisory oversight based on their prudential regulator's framework.

The legislation also redefines the statutory language governing CFPB supervision of nonbanks, replacing "risks to consumers" with "substantial injury to consumers." The scope of supervision is limited to activities, operations, records, personnel, and systems directly related to the consumer financial product or service.

The bill also modifies the CFPB's enforcement authority, adding a statutory definition of "substantial injury" and adjusting conditions for considering conduct abusive. Market monitoring information gathered by the CFPB cannot be used in enforcement investigations or related actions. A safe harbor from certain monetary penalties and damages is established for qualifying small-dollar credit products offered by insured banks and credit unions, subject to specific conditions in the bill.

The legislation also impacts earned wage access (EWA) providers, requiring them to offer the same amount of earned wages for a no-cost option and prohibits interest, late fees, and penalties for nonpayment. Finally, the bill instructs the Government Accountability Office to study the market for pay later (BNPL) services and report to Congress on related issues.