Consumer Federation backs California's financial oversight amid national CFPB layoffs

The Senate Budget and Fiscal Review Subcommittee No. 4 on State Administration and General Government convened on May 1, 2025, to discuss key budgetary issues impacting California's financial landscape. The meeting highlighted significant topics, including funding for the California Arts Council (CAC) and the operations of the Department of Financial Protection and Innovation (DFPI).

During the session, advocates emphasized the importance of restoring $5 million to the CAC budget, arguing that this funding is crucial for reaching children across the state. The testimony underscored the transformative power of the arts, framing the budget allocation not merely as a financial line item but as a vital lifeline for youth engagement and development.

Robert Harrell, Executive Director of the Consumer Federation of California, addressed the subcommittee regarding the DFPI. He expressed support for the governor's proposed budget trailer bill language concerning fee adjustments, which he noted are essential to prevent financial shocks from unaddressed fee increases. Harrell highlighted the rapid evolution of financial services, particularly the rise of non-bank entities providing banking services, and the critical oversight role that DFPI plays in this changing landscape. He cautioned that with significant staff reductions anticipated at the federal Consumer Financial Protection Bureau, the responsibility for consumer protection would increasingly fall on state agencies like DFPI.

The meeting concluded with a series of vote-only items, which were approved unanimously by the subcommittee members. The session wrapped up with gratitude expressed to all participants, including public witnesses, for their contributions to the discussions.

Overall, the meeting underscored the ongoing challenges and responsibilities faced by California's financial oversight bodies, as well as the importance of arts funding in fostering community engagement and support for youth.