End Director discretion to steer Civil Penalty Fund to activist education grantees
Mandate recounts critics’ charge that Civil Penalty Fund ‘consumer education’ and ‘financial literacy’ grants become a political slush fund; until abolition, unused penalties should go to Treasury so the Bureau has no financial incentive to impose penalties for activism.
Mandate
Mandate Ch. 27 (Financial Regulatory Agencies) — CFPB: Civil Penalty Fund serves to compensate victims and underwrite consumer education/financial literacy at Director’s discretion; critics charge money ends up with leftist activist organizations; until abolition, ensure civil penalty funds not used to recompense wronged consumers go to Treasury; CFPB should not have a financial incentive to impose penalties.
Undo plan
1) Keep victim compensation first priority for Civil Penalty Fund dollars.
2) Route residual amounts to Treasury with GAO-audited education grants only via competitive, viewpoint-neutral criteria if retained.
3) Publish grantee lists, selection criteria, and political-affiliation firewalls.
4) Separate penalty assessment from any Bureau budget benefit.
5) Verify: Fund financial statements; grantee transparency portal.