FOR IMMEDIATE RELEASE
June 23, 2023
House FSGG Appropriations Bill Would Undermine Financial Reform
Washington, D.C. – The House Financial Services and General Government Appropriations Subcommittee approved yesterday a funding bill loaded with at least 51 dangerous policy riders that would roll back financial reform and undermine consumer, and investor protections.
“These policy provisions set up a dangerous dynamic where lawmakers are pressured to accept dangerous provisions in order to fund an agency or a program,” said Renita Marcellin, advocacy and legislative director at Americans for Financial Reform. “The riders would dramatically weaken oversight of Wall Street and predatory lenders, and threaten the economic security of families, communities, and businesses across the country.”
The House version of the Financial Services and General Government (FSGG) appropriations bill contains multiple attacks on the CFPB, SEC, and the FTC–pivotal agencies in protecting consumers and investors. It would subject the CFPB to the annual appropriations process, letting the financial industry and industry-friendly lawmakers defund measures to stop them from ripping people off.
It would prohibit the SEC from finalizing rules to better regulate opaque private markets to allow investors, usually pension funds and retirees, to have better insight into companies they invest in to save for retirement. Additionally, it would prohibits the SEC from mandating companies to disclose their exposure to climate risk.
Another rider would block federal employees from investing in mutual funds that consider environmental, social, and governance (ESG) criteria. Rep. Rosa DeLauro, the ranking member for the House Appropriations Committee and Rep. Steny Hoyer, the ranking member on the FSGG subcommittee, both rightly called out the dangers of these policy riders for letting corporations off the hook while harming consumers.
“Members of Congress should focus on funding a robust government that can sufficiently monitor the marketplace, protect consumers, and create a resilient financial system that works for everyone,” Marcellin added. “Instead, the Republican majority is choosing to play these games whenever it’s time to keep on the lights at the expense of their constituents who need these agencies and programs running at full speed.”