beatriz-perez-moya / unsplashThe House Financial Services Committee has taken the next step in its effort to overhaul the Consumer Financial Protection Bureau (CFPB) by inviting public comment on the discussion draft of the CFPB Reform Act of 2026. Following the Committee’s July 15 hearing titled “The Semi-Annual Report of the Bureau of Consumer Financial Protection” featuring then Acting Director Russell Vought, interested stakeholders now have an opportunity to help shape what could become the most significant statutory changes to the Bureau since its creation by the Dodd-Frank Act in 2010. Comments are due August 21, 2026.
The Committee is not merely soliciting general comments. Instead, it has posed a series of detailed questions on each title of the discussion draft, signaling that it is actively seeking input from industry participants, consumer advocates, academics, and other interested parties before legislation is formally introduced. Comments may be submitted by email to fsc119@mail.house.gov.
The discussion draft is organized into five major titles:
Title I – Reforming Bureau Governance. The Committee seeks feedback on reforms designed to make the CFPB more accountable and transparent. Among other things, the draft would bring the CFPB under the congressional appropriations process, establish a dedicated Inspector General, strengthen cost-benefit analysis requirements for rulemaking, improve small business impact assessments, reform the Bureau’s use of civil penalty funds, and require periodic retrospective reviews of major regulations. The Committee asks whether additional structural reforms could reduce regulatory uncertainty across administrations and improve the transparency and quality of the CFPB’s rulemaking process.
Title II – Restoring Clarity and Procedural Fairness. This title focuses on providing greater legal certainty regarding the CFPB’s statutory authorities, particularly its authority to prohibit unfair, deceptive, or abusive acts or practices (UDAAP). It also proposes additional procedural safeguards for enforcement actions, clarifies statutes of limitations, and addresses jurisdictional issues involving attorneys and state-regulated insurance companies. The Committee is seeking recommendations regarding additional statutory definitions that should be clarified and other procedural safeguards that would improve fairness and predictability in supervision and enforcement.
Title III – Promoting Innovation in Consumer Financial Markets. The draft includes provisions intended to encourage innovation while expanding consumer access to financial products. Among other things, it would provide greater clarity for certain small-dollar loan products offered by depository institutions and require the CFPB and other federal financial agencies to distinguish more clearly between non-binding guidance and legally enforceable requirements. The Committee is requesting suggestions for removing regulatory barriers that inhibit innovation and promote greater competition and consumer choice.
Title IV – Promoting Effective, Predictable Supervision. This section would revise the CFPB’s supervisory framework by modifying supervisory thresholds for banks and credit unions, allowing certain institutions to elect supervision by their prudential regulators for consumer compliance matters, improving coordination among regulators, and narrowing the Bureau’s authority over nonbank supervision. The Committee specifically asks whether these proposals strike the appropriate balance between consumer protection and avoiding duplicative oversight.
Title V – Preventing Regulation by Enforcement. The final title addresses concerns that regulatory expectations should be established through rulemaking rather than enforcement actions. Proposed reforms include changes to civil money penalties, market monitoring authorities, supervisory thresholds, and the CFPB’s consumer complaint process. The Committee also seeks suggestions regarding voluntary self-reporting incentives and ways to better protect sensitive consumer data maintained by the Bureau.
The Committee’s publication of these detailed questions reflects an apparent desire to build a legislative record before introducing a formal bill. Stakeholders that have long advocated changes to the CFPB, as well as those who oppose many of the proposed reforms, have a meaningful opportunity to influence the legislation during this comment period.
