Kathleen Kraninger, the director of the Consumer Financial Protection Bureau, is not on the same page as President Trump when it comes to how much money the agency should get to run itself for the next few years.
Kraninger and the CFPB submitted a budget proposal this month seeking $70 million more to run the agency during the 2020 fiscal year, which starts on Oct. 1. President Trump, meanwhile, proposed cutting the CFPB’s budget by $25 million for the next fiscal year.
The CFPB’s budget for the current fiscal year is $510 million. Kraninger asked for $580 million for the 2020 fiscal year and $595 million for the 2021 fiscal year.
“The budget increases reflect the cost associated with the recently approved staffing targets after the Bureau ended the hiring freeze previously in place since FY 2018 as well as additional funding for new initiatives in pursuit of the Bureau’s mission and strategic goals,” the CFPB said in its proposal.
In seeking more money, the CFPB wants to increase the amount of consumer education it does while also spending more to process and analyze complaints filed by consumers.
Related to debt collection, the CFPB said it wants to use some funds to “conduct additional qualitative disclosure testing” related to the model validation notice it released in its proposed debt collection rule.
The CFPB also reiterated its plan to take “final action” about the proposed debt collection rule during the 2020 calendar year.
Compliance professionals noted that Kraninger’s request for more money to run the CFPB was a sign of her growing “independence” from the White House and further indication that the agency is “here to stay.” They also projected that the CFPB will get the money it is asking for.
“The issue here is the CFPB will get what it needs,” said Richard Gottlieb, a partner at Manatt, in a published report. “They are the only regulator for a number of entities, so they need people to conduct their exams and do the supervisory work they exist to do.”