Budget Battle: Financial Watchdogs at Risk

Republican efforts to cut funding for the Consumer Financial Protection Bureau and other financial watchdogs face setbacks due to budgetary rule violations. Senate parliamentarian Elizabeth MacDonough ruled against provisions reducing budgets within Trump's tax-cut bill, requiring 60 votes for passage. Republicans need bipartisan support to proceed.

Republican proposals to reduce funding for financial oversight bodies, including the Consumer Financial Protection Bureau (CFPB), have hit a legal roadblock, according to a ruling by the U.S. Senate's nonpartisan referee.

Senate parliamentarian Elizabeth MacDonough declared that these provisions cannot pass with merely a simple majority vote in the Republican-controlled chamber. This means they cannot be included in President Donald Trump's broader tax-cut and spending bill without additional votes, complicating the legislative process.

To succeed, Republicans will require 60 votes instead of a simple majority, as they face opposition from Democrats and must garner bipartisan support. Senate Banking Committee Chairman Tim Scott insists on continuing the pursuit of such policy changes.

(With inputs from agencies.)