Chairman Tim Scott (R-S.C.) has unveiled the legislative text of the Senate Banking Committee’s contributions to the Senate Republicans’ One Big Beautiful Bill. This legislation is designed to enhance the American economy by reducing unnecessary financial regulation and providing funds for national security.
“Congress has a mandate to deliver President Trump’s agenda for the American people – and that means streamlining the federal bureaucracy, cutting red tape, and saving taxpayer dollars,” Chairman Scott stated. He emphasized his collaboration with committee colleagues and other Senate members to scrutinize programs under their jurisdiction, aiming to identify efficiencies and cost savings.
The provisions introduced by the Banking Committee aim to cut costs in several areas:
– The funding cap for the Consumer Financial Protection Bureau (CFPB) will be decreased, which is intended to save taxpayer money without hindering its statutory functions.
– Pay parity between employees of the Federal Reserve and the Treasury Department will be established. This aims to align salaries as currently, non-monetary policy employees at the Federal Reserve are paid more than those at the Treasury.
– The Office of Financial Research (OFR) will be eliminated due to its redundancy, as members of the Financial Stability Oversight Council (FSOC) already handle economic research functions.
– Functions of the Public Company Accounting Oversight Board (PCAOB) will be transferred to the Securities and Exchange Commission (SEC), potentially reducing duplication and lowering costs.
– Implementation of Dodd-Frank Section 1071 regarding small business lending data collection will be postponed. The data is already collected by various entities, so this delay aims to reduce redundant reporting requirements without compromising data quality.
Additionally, unobligated funds will return to the Treasury from initiatives such as:
– Rescinded funds from green housing projects within the Inflation Reduction Act.
– Unused funds from an SEC reserve fund designated for technology modernization; this fund will also be permanently eliminated.
Furthermore, $1 billion in funding is allocated for the Defense Production Act (DPA), aligning with President Trump’s priorities on national security.
