AFSA - American Financial Services Association

11/18/2024 | News release | Distributed by Public on 11/18/2024 10:40

What’s Next at the CFPB

What's Next at the CFPB?

In the week since the election, President-elect Trump has been announcing Cabinet nominees and presidential appointments. The nominee for CFPB Director has not yet been announced, and, even when announced, will not be able to take office until confirmed by the Senate. Once President-elect Trump is sworn in on January 20, he will have the authority to fire Director Chopra, if he does not resign at the request of the incoming administration. Below are a few different scenarios on how this position could be filled.

CFPB Statutes: If no other action is taken, the CFPB statutes state that the Deputy Director is authorized to serve as the Acting Director when the position of Director is vacant.

Federal Vacancies Reform Act: Under the Federal Vacancies Act, either a government employee who already occupies a Senate confirmed or a senior level position in the department can be appointed by the President-elect to temporarily assume an agency position without being confirmed. The Act limits who can serve as an acting secretary or director and for how long they can serve in that capacity. Any administration official who has been nominated for the Senate confirmed position to be filled cannot be also the acting secretary or director. Additionally, officials who are appointed as acting secretaries or directors during a presidential transition period can only serve for a maximum of 300 days. These temporary heads are permitted to hold full powers of their respective departments.

Recess Appointments: In some circumstances not normally associated with a new president's initial Cabinet appointments, the president may fill vacancies in executive branch positions through a recess appointment. The Constitution empowers the president to make this sort of limited-term appointment to fill a vacancy without Senate confirmation when that chamber is in recess. Recess appointments, however, expire at the end of the Senate's next session. For recess appointments to occur, both chambers must be adjourned for more than ten days. While recess appointments have not been used recently, they are not uncommon to modern administrations. President Bill Clinton made 139 recess appointments while in the White House; President George W. Bush made 171; and President Barack Obama made 32, according to the Congressional Research Service.

Regular Order Senate Confirmation Process: The heads of the executive departments and the heads of all other federal agencies are nominated by the president and sent to the Senate for confirmation. The "advice and consent" process for Cabinet officials typically begins with a hearing in the appropriate congressional committee. If the nominee is approved by the committee, the nomination is sent to the full Senate for a simple majority vote. In its history, the Senate has confirmed 126 Supreme Court nominations and well over 500 Cabinet nominations.

Fun Fact: The political drama, "Advise & Consent," based on the novel of the same title, provides a sensationalized version of the process, and was one of the last films allowed virtually uninhibited access to the U.S. Senate's chamber and other spaces for filming.

November 18th, 2024