Randy's Roundup: Consumer Financial Protection Bureau Structure Ruled Unconstitutional

Consumer Financial Protection Bureau Structure Ruled Unconstitutional
Lack of accountability for federal agencies is something of great concern for many Americans. Last week, the U.S. Court of Appeals for the D.C. Circuit agreed with me that the Consumer Financial Protection Bureau’s (CFPB) single, unelected agency director with broad authority and hardly any accountability, is unconstitutional. While I applaud the court’s decision in that regard, its solution left something to be desired.

The court ordered that CFPB Director Richard Cordray be subject to removal or replacement by the President, a structure similar to many federal agencies. The problem with the court’s solution is that the CFPB was set up to be independent. However, the CFPB has proven that it is not so much an independent agency as it is a political agency.

The Bureau has acted politically in not using the public notice system and comment period for significant policy changes and in prohibiting consumers from accessing certain financial products. That is why I introduced H.R. 1266 last year, to alter the structure of the CFPB to a five-person, bipartisan commission. This is the structure that other independent agencies follow, and it would make the CFPB more accountable and politically neutral. After all, consumer protection is why the CFPB was created in the first place.

Spotlight on the House Agriculture Committee
One of the things I most appreciate about being on the House Agriculture Committee is that I have the opportunity to take part in hearings that directly affect a large number of people in my district. During the past year, the Agriculture Committee has worked to address issues important to farmers, ranchers, and consumers. Given consecutive years of declining farm income, the Ag Committee put a special focus on the state of the farm economy through a series of beneficial hearings this year.

This series of hearings is a good example of the Ag Committee taking the time to review and understand the economic challenges facing farmers and ranchers and the impact low prices have across local economies. From community banks and other lenders, equipment dealers and suppliers, it is not just the farmers and ranchers themselves who are affected by fluctuations in the market. The Ag Committee looked at these issues from all sides, including the cost of production inputs, the impact on consumer food prices and concerns of livestock producers. Access to credit is a key concern for producers, so I appreciated the opportunity to question expert witnesses on consolidation and financing for agriculture. You can watch the exchange here; my questions start at 1:06:50.

One of the benefits of these Committee hearings is that they present an opportunity to educate other Members of Congress, who often do not represent agricultural districts. When our Committee hears directly from producers, lenders, economists and others, we build a strong a record for why Congress needs to keep the five-year Farm Bill intact and make a case for protecting crop insurance and other programs.

The House Agriculture Committee has a tradition of being one of the more bipartisan committees in the House, and Ag Committee members share many common goals. While our Committee’s largest legislation, the Farm Bill, is the focus every five years, we work hard in between Farm Bills to understand the issues facing those who produce our food and fiber, oversee programs and regulations, and help others in Congress understand modern agriculture production.