Appropriators approve bill curbing Dodd-Frank reforms

The House Appropriations Committee financial services subcommittee on Thursday approved its 2012 appropriations bill, which curbs the Consumer Financial Protection Bureau (CFPB) created by the Dodd-Frank financial reform law.

The bill now moves to full committee for a markup on June 23 and the House floor the week of July 11. Keeping with subcommittee tradition, amendments were not offered and the bill was reported out without a roll call vote.

All told, the $19.9 billion in funding included in the bill is nearly $2 billion below last year's level and $6 billion below the president's budget request. This is a 9 percent cut from current funding for the agencies in the bill.

It also contains numerous policy riders including one that forbids enforcement of the Obama healthcare reform’s mandate that consumers buy health insurance.

“We really have to make difficult choices if we are going to reduce the Federal government’s unsustainable level of spending,” subcommittee Chairwoman Jo Ann Emerson (R-Mo.).

The bill would bring the CFPB's budget under the purview of appropriators starting in 2013. Currently, its funding falls outside the reach of lawmakers, as it receives transfers from the Federal Reserve to fund its operations.

It would limit the mandatory funds provided to the CFPB to $200 million — less than half of what it can receive currently. The move serves to effectively cap its spending before bringing it under the appropriations process.

Under Dodd-Frank, CFPB funding levels are set as a percentage of 2009 Federal Reserve spending. In fiscal 2012, the CFPB expected to receive a maximum of roughly $550 million.

The Securities and Exchange Commission (SEC), which is currently working to write a huge number of rules to implement Dodd-Frank, would see its budget hold steady in 2012 at $1.2 billion. Republicans had previously pushed to cut the agency's budget, but the new bill still comes up short of the president's request, which called for a $222 million hike.

The Treasury Department would receive $12.2 billion in the bill, $929 million below last year's level. The IRS would see its budget cut by $606 million, to $11.5 billion, under the measure.

The Consumer Product Safety Commission would have its funding cut by $3.5 million to $111 million. The bill also includes language prohibiting funding for the new public database established by the office, which would allow consumers to report problems with products. Its existence had been hotly contested by business groups, who contend there is no guarantee the complaints posted would be accurate.

The Federal Communications Commission would suffer a funding cut of $17 million, as its budget would fall to $319 million. The measure also prohibits funding for "net neutrality."

The District of Columbia would see its federal funding shrink by $62 million, to $637 million, under the bill.

The bill also includes several legislative provisions, including one that would specifically prohibit funding for "czars" tied to healthcare, climate change, the auto industry, urban affairs or any "substantively similar" positions. It also would prohibit funds for a requirement that entities applying for federal contacts be required to disclose campaign contributions.

The bill can expect a tougher time in full committee. Democrats have blasted the cuts to the IRS, which they estimate will cause 4,100 workers to be furloughed, thereby increasing tax evasion.

Full committee ranking member Rep. Norm Dicks (D-Wash.) said his party is very concerned about the federal job losses that would be caused by the bill.

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