WASHINGTON — The Trump administration’s 2019 budget highlights the administration’s goal of reining in the post-crisis regulatory apparatus, with proposed cuts for several agencies including the Consumer Financial Protection Bureau.
The White House budget has been a mostly ceremonial document for much of the last 10 years, with Congress primarily relying on continuing resolutions to fund the government. This year’s budget is especially moot, since Congress passed
and the president signed a deal last week that would fund the government through 2019.
But if the budget document allows President Trump to state where his priorities are, he made a point in his second budget — his first budget was released in mid-May
of 2017 — of calling for a reduction in the various means by which financial regulators are funded.
The administration is proposing significant curbs to how the CFPB is funded, as well as further cuts to the Securities and Exchange Commission, and the Office of Financial Research.
Perhaps reflecting the influence of Mick Mulvaney, who is both the director of the Office of Management and Budget and acting director of the CFPB, the budget was especially critical of the consumer bureau. The agency’s brief history, the budget said, was “rife with examples of the poor financial and personnel management decisions.”
The 2019 budget proposal repeated the administration’s 2018 call to do away with grants for community development financial institutions, and also called for an end to special allotments for affordable housing made through the government-sponsored enterprises, although the budget also calls for doubling the GSEs’ guarantee fee tax. Meanwhile, the budget projects a net profit of $26 billion for the Federal Housing Administration over a three-year period.
The following are key takeaways of how the proposed budget would affect financial services policy.