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 "Consumer Financial Protection Circular 2024-04: Whistleblower Protections Under CFPA Section 1057".
Summary
S.J. Res. 135 is a congressional disapproval resolution under the Congressional Review Act. It targets a rule issued by the Bureau of Consumer Financial Protection that withdrew Consumer Financial Protection Circular 2024-04, which addressed whistleblower protections under Section 1057 of the Consumer Financial Protection Act (CFPA). If enacted, the resolution would nullify the withdrawal rule and restore the withdrawn circular’s legal effect.
In practical terms, the measure is aimed at preserving or reinstating CFPB guidance that interprets whistleblower protections for employees and other covered individuals under CFPA Section 1057. The resolution does not create a new regulatory program; instead, it uses Congress’s CRA authority to overturn an agency action and prevent the withdrawal from taking effect.
Impact
The bill would affect federal administrative law by disapproving the CFPB’s withdrawal rule and making that withdrawal have no force or effect. That would leave the underlying whistleblower-protection circular in place, influencing how the CFPB and regulated financial institutions understand and apply whistleblower protections under CFPA Section 1057. The direct parties affected would include the CFPB, financial services employers, and potential whistleblowers seeking protection from retaliation.
Sentiment
The available legislative history shows limited recorded debate, but the bill’s introduction and discharge by petition indicate active congressional interest in reversing the CFPB’s withdrawal action. The motion to proceed to consideration was rejected in the Senate by voice vote, suggesting the measure did not advance smoothly and may have faced procedural or political resistance. Overall, the sentiment appears divided or uncertain rather than broadly consensual.
Contention
The main point of contention is whether Congress should override the CFPB’s decision to withdraw its whistleblower-protection circular. Supporters are likely to view the circular as an important safeguard for whistleblowers and a useful interpretation of CFPA Section 1057, while opponents may argue that the agency should have discretion to revise or withdraw its own guidance. The procedural history also suggests disagreement over whether the resolution should move forward at all.