Making the CFPB Accountable to Small Businesses Act of 2025 | ChamberLight
Bills · HR 1606
IN COMMITTEE· 119TH CONGRESS
House BillHR 1606Finance and Financial Sector
Making the CFPB Accountable to Small Businesses Act of 2025
INTRO FEB 26· LAST ACTION FEB 26
READING
2MIN
COSPONSORS
3
READER REACTIONS0 TOTAL
NO VOTES YET · BE THE FIRST
Introduced only
LEGISLATIVE PROGRESS
STEP 2 / 8
Introduced
In Committee
Reported
Passed House
Passed Senate
Conference
To President
Became Law
WHAT THE BILL DOES
AI-written
Voters should care about this bill because it aims to increase transparency and accountability in how federal agencies create regulations that impact the economy. If this bill becomes law, agencies will need to offer more compelling arguments for why a particular rule should apply equally to a large corporation and a small, independent business, potentially reducing unforeseen burdens on small businesses. If it doesn't pass, agencies would continue with their current level of regulatory flexibility analysis, which some argue doesn't adequately address the disproportionate impact regulations can have on smaller entities.
KEY PROVISIONS
3AI-extracted
PROVISION 01
Requires the Consumer Financial Protection Bureau (CFPB) to explicitly consider the impact of its proposed rules on small entities, specifically following existing guidelines for such analysis.
Ensures that the CFPB, a significant regulator of financial services, specifically factors small business impacts into its rule-making process with a higher level of scrutiny.
PROVISION 02
Mandates that covered agencies, when proposing a new rule, provide a detailed justification if they don't adopt alternatives that would reduce the burden on small businesses.
Increases the burden on agencies to explain why small businesses should not receive special consideration, potentially leading to more tailored rules or clearer rationale.
PROVISION 03
Requires covered agencies, in their final rule analysis, to describe steps taken to minimize additional credit costs for small entities and to justify not adopting alternatives for small entities.
Extends the justification requirement to the final stage of rule-making and focuses specifically on credit costs, a critical concern for many small businesses.
Referred to the Committee on the Judiciary, and in addition to the Committees on Small Business, and Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Voters should care about this bill because it aims to increase transparency and accountability in how federal agencies create regulations that impact the economy. If this bill becomes law, agencies will need to offer more compelling arguments for why a particular rule should apply equally to a large corporation and a small, independent business, potentially reducing unforeseen burdens on small businesses. If it doesn't pass, agencies would continue with their current level of regulatory flexibility analysis, which some argue doesn't adequately address the disproportionate impact regulations can have on smaller entities.
KEY PROVISIONS
AI-extracted
high
Requires the Consumer Financial Protection Bureau (CFPB) to explicitly consider the impact of its proposed rules on small entities, specifically following existing guidelines for such analysis.
Ensures that the CFPB, a significant regulator of financial services, specifically factors small business impacts into its rule-making process with a higher level of scrutiny.
high
Mandates that covered agencies, when proposing a new rule, provide a detailed justification if they don't adopt alternatives that would reduce the burden on small businesses.
Increases the burden on agencies to explain why small businesses should not receive special consideration, potentially leading to more tailored rules or clearer rationale.
high
Requires covered agencies, in their final rule analysis, to describe steps taken to minimize additional credit costs for small entities and to justify not adopting alternatives for small entities.
Extends the justification requirement to the final stage of rule-making and focuses specifically on credit costs, a critical concern for many small businesses.
GLOSSARY
AI-written
Consumer Financial Protection Bureau (CFPB)
A U.S. government agency responsible for protecting consumers in the financial sector, overseeing banks, lenders, and other financial companies.
Dodd-Frank Wall Street Reform and Consumer Protection Act
A federal law passed in 2010 to regulate the financial industry in response to the 2008 financial crisis, which established the CFPB.
Regulatory Flexibility Analysis
A process required by law for federal agencies to assess the impact of their proposed rules on small businesses, small organizations, and small governments.
Small entities
Small businesses, small non-profit organizations, and small governmental jurisdictions, as defined by federal law for regulatory purposes.
Rulemaking
The process by which federal agencies create and issue regulations (rules) to implement and enforce laws passed by Congress.
Covered agency
A federal agency that is subject to the requirements of the Regulatory Flexibility Act when creating new rules.
ACTION TIMELINE
2 EVENTS
FEB 26, 25
Introduced in House
INTROREFERRAL
FEB 26, 25
Referred to the Committee on the Judiciary, and in addition to the Committees on Small Business, and Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.