S. 303 — Defund the CFPB Act

This section caps funding transfers from the Federal Reserve to the Bureau of Consumer Financial Protection (CFPB) at $0 (previously, amounts determined by the CFPB director to be reasonably necessary, subject to a cap of 12% of the Federal Reserve System's total operating expenses as reported in 2009, adjusted annually by the employment cost index for state and local government workers). (As background, the CFPB enforces federal consumer financial laws including those on mortgages, credit cards, and payday loans, and has been funded through such transfers rather than annual appropriations.) It also strikes the prior funding cap and transition funding provisions and redesignates budget, financial management, and audit requirements as paragraphs (2) and (3).