A joint resolution providing for congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Bureau of Consumer Financial Protection relating to the withdrawal of the rule relating to "The Fair Credit Reporting Act's Limited Preemption of State Laws".
Summary
S.J. Res. 129 is a congressional disapproval resolution under the Congressional Review Act. It would nullify a Bureau of Consumer Financial Protection rule that withdrew an earlier CFPB rule concerning the Fair Credit Reporting Act’s limited preemption of state laws. If enacted, the resolution would make the withdrawal rule have no force or effect, effectively restoring the prior regulatory posture rather than allowing the withdrawal to stand.
The measure is focused on federal consumer credit reporting regulation and the balance between federal and state authority. Its practical effect would be to preserve or reinstate the CFPB’s earlier position on how much state law is preempted by the Fair Credit Reporting Act, which could affect credit reporting agencies, furnishers of credit information, consumers disputing credit report errors, and state regulators enforcing consumer protection laws.
Impact
The resolution would not amend the Fair Credit Reporting Act itself, but it would override the CFPB’s 2025 withdrawal rule under chapter 8 of title 5, U.S. Code. By disapproving that withdrawal, Congress would prevent the agency’s rescission from taking effect and would leave the earlier 2022 rule on the books as the operative policy position. The main legal impact would be on the scope of state consumer protection authority in the credit reporting area, potentially affecting how state laws interact with federal preemption under the FCRA.
Sentiment
The available legislative history suggests the bill is politically contested rather than broadly consensus-driven. The measure was introduced and referred to committee, then discharged by petition, but the Senate later rejected a motion to proceed to consideration by voice vote, indicating insufficient support to advance. That procedural outcome suggests skepticism or opposition among senators, even though the resolution reflects support from sponsors who favor congressional reversal of the CFPB’s withdrawal.
Contention
The central point of contention is the proper balance between federal uniformity and state authority in credit reporting law. Supporters of the resolution appear to favor preserving state law room to regulate consumer reporting practices, while opponents likely prefer allowing the CFPB’s withdrawal to stand, which would maintain a different preemption framework. More broadly, the dispute reflects disagreement over whether Congress should use the Congressional Review Act to overturn an agency action involving preemption and consumer financial regulation.