The bill, HR 1195, was originally proposed to codify the CFPB’s existing advisory councils and establish a new advisory board for small businesses. The board would “provide small businesses with the opportunity to have their voices heard as the Consumer Financial Protection Bureau develops regulations that impact the economy,” according to a statement from the House Financial Services Committee.
“This bipartisan legislation will restore balance, continuing strong protections for consumers while allowing small businesses the freedom to grow and create good-paying jobs,” said Rep. Robert Pittenger (R-N.C.), the bill’s sponsor.
However, an amendment that would reduce the CFPB’s funding – by up to $100 million over the next 10 years, according to some reports – was inserted into the bill prior to the house vote. And it’s that change that’s prompted the promise of a rarely-used veto from Obama.
“If the president were presented with HR 1195 as currently amended, his senior advisors would recommend that he veto the bill,” the White House said in a statement. The statement indicated that Obama did not oppose the original version of the bill, which merely established the advisory boards.
The House of Representatives this week passed a bill that would cut funding for the Consumer Financial Protection Bureau – but President Barack Obama has promised a veto if the bill comes before his desk.