The House Appropriations subcommittee on financial services passed its fiscal year 2017 spending bill, which includes several ABA policy priorities. The bill would reform the CFPB by replacing the director with a bipartisan five-member commission and fund it through congressional appropriations, rather than directly from the Federal Reserve. It would also stop the CFPB’s rulemaking process limiting the usefulness of arbitration agreements.
The spending bill would also provide full funding for the Small Business Administration’s 7(a) and 504 business loan programs, as advocated by ABA. It also includes a measure changing the U.S. Bankruptcy Code to facilitate the orderly resolution of a failing financial firm.