Senate eyes May for CFPB nomination vote, Scott says

WASHINGTON — Jonathan McKernan would likely be confirmed as head of the Consumer Financial Protection Bureau “sometime probably in May,” Senate Banking Committee Chairman Tim Scott said. 

The Republican from South Carolina told a room full of bankers that McKernan’s nomination vote is “imminent.” 

“‘Imminent’ in the Senate might mean forever,” Scott said Tuesday. “But typically it means in the next month or two.” 

He clarified shortly afterward that it likely means May. 

McKernan, a former board member at the Federal Deposit Insurance Corp., has awaited confirmation by the full Senate since his nomination passed through the Senate Banking Committee in early March. The panel recommended his nomination favorably to the Senate in a 13-11 party-line vote. 

He’s expected to similarly be confirmed along party lines when his nomination is considered on the Senate floor. 

McKernan is anticipated to take over the CFPB as it undergoes a chaotic transformation. The Trump administration has attempted to dismantle the agency, and as it’s subject to a preliminary injunction from a federal judge halting mass layoffs and contract terminations. 

Scott in his comments said that, initially, the Trump administration wanted to shrink the CFPB before it installed McKernan. 

“I think there is some consternation, though, honestly, in the system, because a part of the challenge is we wanted it to shrink the CFPB down to the right size, and I think we wanted to get as much that work done before we had a permanent guy come in and take it over,” Scott said. 

Now, Scott said he thinks “we are at the point where it’s time to move forward.” 

The delay in McKernan’s nomination and confirmation, as well as the Trump administration’s attempt to shutter the agency, has caused some angst for bankers who wanted the White House to roll back some of the bureau’s rules, which does require some policy staff. The choice of McKernan — who previously served as counsel on the Senate Banking Committee — eased some of those tensions. 

At his confirmation hearing, McKernan promised that he would “fully execute the law” but consistently declined to say whether he would stand in the way of President Donald Trump and billionaire White House advisor Elon Musk’s attempts to shut the agency down.

“If confirmed, I will fully execute the law … and perform each of its other statutorily assigned functions,” McKernan said in his opening statement. “The CFPB will do this by centering its regulation on real risk to consumers and by focusing its enforcement on bad actors.”

Scott also outlined his legislative hopes for the bureau. He said, similarly to House Financial Services Committee Chairman French Hill, R-Ark., that he wants to pass legislation that would put the CFPB under Congressional appropriations and that would subject the bureau to the oversight of a bipartisan board. 

Scott said he plans to use the reconciliation process, which only requires 50% of the vote, to pass some measures related to the CFPB. It’s not clear, however, how much of this wishlist could be accomplished via reconciliation, which is meant to be limited to the consideration of spending measures. 

“We’re looking at putting in the reconciliation vehicle, either capping the amount of money that comes to the CFPB, [or] I’d love to have a bipartisan board over the CFPB,” Scott said. “I think everything we can do to move the CFPB into the normal congressional process from a budgeting perspective and oversight is better for the American consumer.”