CFPB sends Fed zero-dollar budget request

by Francis Monfort23 Jan 2018
Consumer Financial Protection Bureau Acting Director Mick Mulvaney has sent the Federal Reserve an unusual budget request: zero.

CNBC reported that Mulvaney told the central bank that the consumer watchdog does not need more funding to operate for the coming quarter.

"This letter is to inform you that for Second Quarter of Fiscal 2018, the Bureau is requesting $0," Mulvaney wrote to Fed Chair Janet Yellen. The Fed handles the bureau’s budget allotment, according to the report.

Mulvaney said in his letter that the bureau had a $177.1 million balance as fiscal 2018 began but only need $145 million to fund operations for each quarter.

"Simply put, I have been assured that the funds currently in the bureau fund are sufficient for the bureau to carry out its statutory mandates for the next fiscal quarter while striving to be efficient, effective, and accountable," Mulvaney said.

Although the CFPB previously carried a reserve fund, the new acting director said he sees no practical reason to follow previous practice.

"It is my intent to spend down the reserve until it is of a much smaller size, while still allowing the Bureau to successfully perform its functions, before making an additional financial request of the Board," he said.

Additionally, the CFPB’s request will allow it to help out in reducing the deficit, according to the report.

Mulvaney said that although the $145 million saved in operating expenses won't "make much of a dent" in the $392 billion deficit projected for the 2018 fiscal year, "the men and women at the bureau are proud to do their part to be responsible stewards of taxpayer dollars."

Related stories:
Mulvaney initiates ‘critical’ review of CFPB policies
CFPB leadership dispute rages on


Should CFPB have more supervision over credit agencies?

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