The “One Big Beautiful Bill Act” (H.R. 1, 119th Cong. (2025)), signed into law on July 4, 2025, cuts the Consumer Financial Protection Bureau's (CFPB) authorized funding nearly 50%. These budget cuts are expected to impact larger credit unions by reducing regulatory examinations and enforcement actions, while smaller credit unions could see fewer indirect compliance demands trickling down from CFPB priorities. Less CFPB scrutiny is a short-term benefit but may allow for increased NCUA and state regulation.
Credit unions may also see fewer policy initiatives, delaying new mortgage servicing rules, HELOC disclosure updates, or changes to fair lending oversight. Consumer protection initiatives may also shift to states who may step up their own CFPB-like regulation, leading to patchwork compliance burdens for credit unions operating in multiple states and a rise in compliance costs. States may also target specific issues like HELOC servicing, fair lending, or foreclosure practices—areas where credit unions are seeing growth and risk.
While less aggressive federal oversight and slower new rule making could ease immediate compliance pressures, the question becomes whether states will seek to impose their own levels of regulation and will these changes yield a positive result for credit unions and their customers?