CFPB–IG Reform Act of 2025
The Bureau of Consumer Financial Protection-Inspector General Reform Act of 2025 would establish a standalone Inspector General (IG) for the Bureau of Consumer Financial Protection (CFPB) and require Senate confirmation for that office. The bill also expands oversight by mandating semiannual hearings, earmarks funding for the Office of the Inspector General (OIG), adds the CFPB to the Council of Inspectors General on Financial Oversight (CIGFO), and sets a tight appointment timeline. Notably, it contemplates a transition in which, upon the first CFPB IG’s Senate confirmation, the current CFPB IG and the Fed’s IG would become the IG for the Board of Governors of the Federal Reserve System, effectively changing how CFPB oversight is administered. The act would take effect when the first CFPB IG is confirmed, but the President could appoint an IG prior to that confirmation.
Key Points
- 1Establishes the position of Inspector General for the CFPB and explicit requirements for appointment (Senate confirmation) and semiannual hearings before congressional committees.
- 2Requires dedicated funding for the CFPB OIG equal to 2 percent of funds transferred to the office, ensuring a defined budget for investigations and audits.
- 3Expands the Council of Inspectors General on Financial Oversight to include the CFPB, broadening coordination among federal financial services watchdogs.
- 4Sets a deadline for appointment (not later than 60 days after enactment) and clarifies transition mechanics, including when the new arrangement would take effect.
- 5Creates a transition plan in which, upon confirmation of the first CFPB IG, the existing CFPB IG and the Fed’s IG would become the IG of the Board of Governors of the Federal Reserve System, reshaping the supervisory structure.