In a ruling on Friday, Senate parliamentarian Elizabeth MacDonough decided that Republicans cannot use Trump’s multitrillion-dollar tax and spending bill to strip all funding from the Consumer Financial Protection Bureau. She also ruled that they cannot cut pay for many Federal Reserve workers. MacDonough said the GOP-backed measures fall outside the scope of the fast-track budget process that Senate Republicans are using to advance Trump’s agenda without any Democratic support. Senate Democrats announced the ruling; Senate Republicans did not immediately respond to requests for comment, Bloomberg reported. The budget process can’t be filibustered and only covers bills about taxes and spending. It is not meant to make broad changes to public policy or to dismantle regulatory agencies. Senate Republicans plan to begin voting next week on their version of what they call a $3 trillion tax and spending cut bill. Under their proposal, the CFPB’s independent funding would be eliminated, and the measure would save about $1.4 billion by lowering non-monetary policy staff pay at the Federal Reserve to match levels at the Treasury Department. The parliamentarian also rejected moves to get rid of the Public Company Accounting Oversight Board and to weaken EPA vehicle-emissions rules. If Republicans insist on keeping any of those provisions, they would need 60 votes to pass them, rather than the simple majority that applies to other parts of the reconciliation package. With 53 Republican seats in the chamber and unified Democratic opposition, clearing that higher hurdle appears unlikely. The decision represents another setback for the Trump administration’s long-running effort to weaken the CFPB. Since its creation, the bureau has faced numerous legal challenges and, under the current administration, has seen major rule-writing and enforcement initiatives scrapped. Democrats plan to challenge more parts of the GOP bill Democrats say they will continue to challenge many other parts of the bill as violating Senate rules. Among the disputed sections are measures to loosen regulations on short-barrel shotguns and firearm silencers and to pressure states to limit their own oversight of artificial intelligence. “We will continue examining every provision in this Great Betrayal of a bill and will scrutinize it to the furthest extent,” said Senator Jeff Merkley, the top Democrat on the Senate Budget Committee. The CFPB currently draws its funding directly from the Federal Reserve and can request up to 12 percent of the Fed’s profits. For years, Republicans have argued that making Congress set the bureau’s budget would make it more accountable. Under the Trump administration, the CFPB has seen many of its enforcement actions halted, staff reductions proposed, and multiple legal challenges filed in federal courts. Senator Tim Scott, who chairs the Senate Banking Committee and oversaw the drafting of the disputed provisions, said he would continue working with MacDonough but gave no details on next steps. More rulings from the Senate’s nonpartisan referee are expected in the coming days as Republicans push to finalize their tax and spending priorities. Cryptopolitan Academy: Want to grow your money in 2025? Learn how to do it with DeFi in our upcoming webclass. Save Your Spot
