Lafayette Reporter

The Senate made an attempt today to overcome President Joe Biden's veto of Senator John Kennedy's Congressional Review Act (CRA) resolution of disapproval. This resolution aims to prohibit the Consumer Financial Protection Bureau (CFPB) from enforcing its Dodd Frank Section 1071 small business data collection rule. Unfortunately, the attempt to override the veto fell short, receiving only 54 votes and failing to reach the necessary two-thirds majority.

Senator Kennedy originally introduced the resolution in October, and it was passed by the Senate. In December, the House of Representatives also passed the resolution. Speaking on the matter, Senator Kennedy expressed disappointment with the outcome, stating, "Common sense is illegal at the CFPB, yet some of my colleagues failed to protect the privacy of small business owners across America from the Biden administration's woke, invasive rule. Congress has already passed this common-sense resolution to safeguard the personal information of small business owners, and it's wrong for a minority of senators to allow President Biden to keep putting sensitive personal information at risk."

The Dodd Frank Section 1071 requires financial institutions to collect certain personal information from small business loan applicants and report it to the CFPB. This information includes details about the applicant's race, ethnicity, sex, and whether the business is minority-owned, woman-owned, or LGBT-owned. The CFPB may then make certain parts of this information public, potentially exposing the identity of small business credit applicants.

In June 2023, Senator Kennedy introduced the Congressional Review Act resolution of disapproval in response to the CFPB's rule to implement Dodd Frank Section 1071. He has also introduced the Transparency in CFPB Cost-Benefit Analysis Act, aimed at preventing the CFPB from imposing unreasonable costs or harms on taxpayers, financial entities, or consumers. Additionally, he introduced the Small LENDER Act, which seeks to protect small businesses in Louisiana by blocking the CFPB from requiring community banks and small lenders to collect and report social data from borrowers.

It remains to be seen what further action will be taken regarding this issue. However, Senator Kennedy's efforts to safeguard the privacy of small business owners and ensure the responsible implementation of regulations by the CFPB are commendable.

To find out more, go to this link: https://www.kennedy.senate.gov/public/press-releases?ID=A92906F9-D049-47DB-A6D1-147BC903C316