On Friday of last week, the United States House of Representatives passed S.J. Res 32 to nullify the Consumer Financial Protection Bureau’s rules implementing Section 1071 of the Dodd-Frank Act – the small-business data collection and reporting rules.
The vote garnered support from all Republican members of the House and six Democrats, including Congressman Henry Cuellar from South Texas.
With bipartisan passage in both the House and Senate, the resolution now goes to the President’s desk where it is expected to face a veto.
Thanks to Texas-centric lawsuits, the burdensome implementation of Section 1071 rules is on hold until the Supreme Court decides the fate of the CFPB and its current funding mechanism. That ruling is expected in June of next year.
If President Biden does veto S.J. Res 32 and the Supreme Court leaves the CFPB unscathed, then the rule will eventually go into effect as currently finalized by the bureau.
Thank you to the hundreds of community bankers who stepped up to voice their support for S.J. Res 32 last week using IBAT’s Grassroots Action Center. This fight is far from over and this issue will be front and center when IBAT members gather in Washington, D.C. to make their voices heard for its 30th Annual Congressional Visit, February 6-8, 2024.