Senator Cortez Masto Introduces Bill to Restore CFPB Funding and Protect Consumers

Strategic Insights -

Senator Catherine Cortez Masto (D-Nev.) has introduced the Stop the Scammers Act, a bill aimed at restoring critical funding to the Consumer Financial Protection Bureau (CFPB) and increasing protections for consumers from scams and fraud. The legislation comes in response to the Republican tax bill, which slashed CFPB funding in half and removed vital protections for victims of unfair, deceptive, and abusive practices. The bill would allow the CFPB to reward whistleblowers who report wrongdoing and provide them with financial compensation from the Civil Penalty Fund.

Key Takeaways:

  • The Stop the Scammers Act would restore CFPB funding to 12 percent of the Federal Reserve's operating budget, ensuring the Bureau can carry out its mission and properly protect Americans.
  • The bill would allow the CFPB to reward whistleblowers with financial compensation from the Civil Penalty Fund, which is funded by monetary penalties imposed on companies and individuals who violate federal consumer financial protection laws.
  • The legislation would also protect whistleblowers' identities and allow them to retain independent counsel.
  • The bill has been cosponsored by 16 Senate Democrats, including Senate Democratic Leader Chuck Schumer and Banking Committee Ranking Member Elizabeth Warren.
  • Senator Cortez Masto has been a leading voice in fighting fraud throughout her career, including sounding the alarm on increasing check fraud scams and introducing bipartisan legislation to deter disruptive phone calls and texts.

Statistics:

  • CFPB funding was slashed by 50% under the Republican tax bill.
  • The Civil Penalty Fund, which would be used to reward whistleblowers, is funded by monetary penalties imposed on companies and individuals who violate federal consumer financial protection laws.
  • The Stop the Scammers Act has been cosponsored by 16 Senate Democrats.
  • Senator Cortez Masto has introduced several bipartisan bills to protect consumers, including one signed into law in 2020.

Sources:

  • Senator Catherine Cortez Masto
  • Senate Democratic Leader Chuck Schumer
  • Banking Committee Ranking Member Elizabeth Warren
  • Cortez Masto.senate.gov
  • https://www.cortezmasto.senate.gov/wp-content/uploads/2025/07/Cortez-Masto-Stop-the-Scammers-Act-for-Introduction-SIL25853.pdf
  • Cortezmasto.senate.gov/news/press-releases/following-passage-of-republican-tax-bill-cortez-masto-fights-to-restore-cfpb-funding-protect-consumers-from-scams/