'Regulatory Slush Fund' Mr. White Discusses the CFPB Power of the Purse

- In this congressional hearing, Mr. White testifies about the power of the purse and the funding structure of the Consumer Financial Protection Bureau (CFPB). He begins by stating that the power of the purse, as outlined in the Constitution, is one of Congress's most significant powers and responsibilities. He emphasizes that this provision was debated fiercely in the first Congress and has grown in importance as the scope of government has expanded.

Mr. White then argues that there is no good reason to give the CFPB its special exemption from Congress's appropriation process. He points out that while other agencies receive revenues from their own operations, none are allowed to access a completely different source of federal money as their main source of revenue. The CFPB, he states, is the first agency to have this privilege, and if the Supreme Court does not rule against its funding structure, other agencies may follow suit.

Lastly, Mr. White criticizes the CFPB's characterization of its finances in a pending Supreme Court case. He argues that the agency's current stance is at odds with its past reports and descriptions. The Dodd Frank act explicitly stated that the CFPB's funds are not appropriated, and the agency itself admitted this fact repeatedly in past testimonies and reports. However, in the Supreme Court case, the CFPB is making the novel argument that the Dodd Frank act was actually an appropriations statute. Mr. White finds this argument unbelievable and argues that it undermines the agency's credibility and justifies the need for oversight.

In conclusion, Mr. White argues that the power of the purse and the responsibility to use it wisely remain Congress's fundamental duties. He highlights the special funding structure of the CFPB as an issue of concern and calls for oversight and a potential Supreme Court ruling against it. -

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