Summary: H.J.Res. 169 (119th Congress) — Congressional Disapproval of CFPB Rule Withdrawal

Purpose

• This joint resolution provides for Congressional disapproval under the congressional review process (Chapter 8, Title 5, United States Code) of a rule issued by the Bureau of Consumer Financial Protection (CFPB).
• Specifically, it targets the CFPB’s withdrawal of the rule associated with “Consumer Financial Protection Circular 2024–05: Improper Overdraft Opt-In Practices.”
• If enacted, the resolution would nullify the CFPB’s withdrawal rule and render that rule inoperative (i.e., have no force or effect).

Key Provisions and Changes

• Disapproval mechanism: The measure uses the congressional disapproval process established in Chapter 8 of Title 5 U.S.C., which if passed by both chambers and presented to the President, can prevent an agency action (in this case, the withdrawal of a CFPB rule) from taking effect.
• Scope of disapproval: Applies specifically to the CFPB rule withdrawal concerning Consumer Financial Protection Circular 2024–05: Improper Overdraft Opt-In Practices. The cited withdrawal appears in the Federal Register references: 89 Fed. Reg. 80075 (October 2, 2024) and related notice, with a subsequent mention in 90 Fed. Reg. 20084 (May 12, 2025).
• Outcome if enacted: The withdrawal rule would have no force or effect, effectively reinstating or preserving the prior CFPB policy/standard as if the withdrawal never occurred, subject to any further administrative or legislative changes.

Affected Parties and Impacts

• Federal regulatory framework: CFPB, as the agency implementing consumer financial protections, is the primary actor affected by this resolution.
• Financial services industry: Banks and non-bank financial institutions that are subject to CFPB overdraft practices and opt-in requirements may see the regulatory landscape return to the status prior to the withdrawal, potentially affecting overdraft policy guidance and consumer communications.
• Consumers: Individuals who rely on overdraft protection guidance and opt-in rules may experience changes in how overdraft programs are disclosed and offered, pending the reinstated standard.

Procedural and Timeline Considerations

• Status: Introduced April 30, 2026, and referred to the House Committee on Financial Services.
• Process: As a joint resolution under the congressional review act, passage in both the House and Senate would be required, followed by presentation to the President for signature. If enacted, it would override the agency’s withdrawal decision.
• Timeline specifics: The bill text references rule withdrawal actions in 2024 and 2025 (CFPB Circular 2024–05 and related Federal Register notices). The resolution itself does not specify a retroactive date beyond disapproval, but it would apply going forward by nullifying the withdrawal decision.

Notes

• The sponsor is Representative Nydia Velázquez, with a co-sponsor listed.
• The bill focuses narrowly on disapproving a single CFPB administrative action (the withdrawal of a specific overdraft-related rule), rather than broader CFPB rulemaking or consumer protection authority.

If you’d like, I can add a compare-and-contrast with the underlying 2024–2025 CFPB actions or outline potential political and practical implications for stakeholders.