Senate Judge Ruls on GOP Tax and Spending Bill
On Friday, Senate Justice Elizabeth MacDonough ruled against allowing Republicans to use Trump’s multi-trillion-dollar tax and spending bill to eliminate all funding for the Consumer Financial Protection Bureau (CFPB). She also rejected a proposal to cut pay for many Federal Reserve employees.
The GOP-sponsored measures fall outside the scope of the fast-track budget process the Senate is using to advance Trump’s priorities without Democratic support, MacDonough confirmed, limiting the ability to use legal tools to stop the fast-track budget process.
Democrats announced the ruling, while Republicans did not immediately respond, Bloomberg reported. The budget process is only for tax and spending bills, not intended to change public policy or break up regulatory agencies.
Potential to disrupt regulatory agencies
Republicans are expected to introduce a $3 trillion tax and spending cut bill next week. The proposal would eliminate the CFPB’s independent funding and save nearly $1.4 billion by reducing the salaries of non-monetary policy staff at the Fed to match those at the Treasury Department.
However, the justices also rejected efforts to eliminate the Public Company Oversight Board (PCAOB) and ease EPA vehicle emissions regulations. If Republicans want to keep those provisions, they would need at least 60 votes to pass, more than the simple majority that would normally be required. With 53 Republicans and unified Democratic opposition, the chances of getting enough votes are slim.
Challenge from the Democrats
Republicans plan to oppose more parts of the GOP bill, arguing they violate Senate rules. Among the contentious parts include a request to reduce regulations on small handguns, silencers and pressure on states to limit artificial intelligence (AI) surveillance.
“We will continue to review every provision of this treasonous contract to ensure maximum control,” said Senador Jeff Merkley, the top Democrat on the Senate Budget Committee.
Currently, the CFPB gets its budget directly from the Fed, and can claim up to 12 percent of the Fed’s profits. Republicans have long argued that letting Congress determine the CFPB’s budget would increase accountability.
During the Trump administration, the CFPB has seen numerous enforcement actions postponed, proposed staff reductions, and numerous legal challenges in federal courts.
Senate Banking Committee Chairman Tim Scott said he would continue to work with Judge MacDonough, but did not say what his next steps would be. Other Senate decisions are expected in the coming days as Republicans try to finalize their tax and budget priorities.
Source: https://tintucbitcoin.com/trump-law-on-digital-money-is-hard/
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