H.R. 7412 – Transparency in CFPB Cost-Benefit Analysis Act

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Updated February 8, 2026 at 10:40 AM UTC

The Transparency in CFPB Cost‑Benefit Analysis Act would change how the Consumer Financial Protection Bureau creates new regulations. It requires the Bureau to publish complete proposed‑rule notices in the Federal Register and to include detailed explanations of why the rule is needed, how it differs from existing rules, and a full cost‑benefit analysis. The bill also adds requirements for considering alternatives, consulting on small‑business impacts, and disclosing assumptions and data sources. It affects the CFPB’s rulemaking process and any entities regulated by the agency, including businesses and consumers.

Key Provisions

Require each CFPB proposed rule notice to be fully published in the Federal Register.
Include a statement of the need for the regulation and why market or state, local, tribal authorities cannot address the problem.
Assess whether the proposed rule duplicates, conflicts with, or is incompatible with existing federal regulations and, if so, justify it, explain coexistence, and outline how to reduce regulatory burden.
Provide a quantitative and qualitative assessment of all anticipated direct and indirect costs and benefits, covering compliance costs, economic effects, implementation costs, and impacts on state, local, and tribal entities.
Identify reasonable alternative approaches, including modifications to existing regulations, and analyze their costs and benefits.
If the rule would increase costs for small businesses, require the Bureau to consult the SBA Office of Advocacy to find ways to minimize those impacts.
Require justification of the regulation when net benefits are lower than those of alternatives or when costs exceed benefits.
Assess how the regulatory burden will be distributed, noting any disproportionate impact on consumers or small businesses.
When feasible, present probability distributions of relevant outcomes using appropriate statistical techniques.
Disclose underlying assumptions and describe any studies or data used, indicating whether they were peer‑reviewed.

Legislative Activity

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1 earlier action

HouseIntro Referral Latest Action

Referred to the House Committee on Financial Services.

Financial Services Committee

April 6, 2022

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HouseIntro Referral

Introduced in House

April 6, 2022

HouseIntro Referral

Referred to the House Committee on Financial Services.

Financial Services Committee

April 6, 2022

Bill Text

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Introduced in HouseIssued April 6, 2022

I

117th CONGRESS

2d Session

H. R. 7412

IN THE HOUSE OF REPRESENTATIVES

April 6, 2022

Mr. Mooney (for himself, Mr. Williams of Texas, Mr. Kustoff, Mr. Hill, Mr. Davidson, Mr. Budd, Mr. Rose, Mr. Huizenga, Mr. Posey, Mr. Timmons, Mr. Emmer, Mr. Hollingsworth, Mrs. Wagner, and Mr. Luetkemeyer) introduced the following bill; which was referred to the Committee on Financial Services

A BILL

To enhance rulemaking requirements for the Bureau of Consumer Financial Protection, and for other purposes.

1.

Short title

This Act may be cited as the Transparency in CFPB Cost-Benefit Analysis Act.

2.

Transparency in cost-benefit analysis

Section 1022(b) of the Consumer Financial Protection Act of 2010 (12 U.S.C. 5512(b)) is amended by adding at the end the following:

(5)

Additional rulemaking requirements

(A)

In general

Each notice of proposed rulemaking issued by the Bureau shall be published in its entirety in the Federal Register and shall include—

(i)

a statement of the need for the proposed regulation;

(ii)

an examination of why the Bureau must undertake the proposed regulation and why the private market, State, local, or tribal authorities cannot adequately address the problem;

(iii)

an examination of whether the proposed regulation is duplicative, inconsistent, or incompatible with other Federal regulations and orders;

(iv)

if the proposed regulation is found to be duplicative, inconsistent, or incompatible with other Federal regulations and orders, a discussion of—

(I)

why the proposed regulation is justified;

(II)

how the proposed regulation can coexist with the existing regulations; and

(III)

how the Bureau plans to reduce the regulatory burden associated with the duplicative, inconsistent, or incompatible proposed regulation;

(v)

a quantitative and qualitative assessment of all anticipated direct and indirect costs and benefits of the proposed regulation, including—

(I)

compliance costs for all regulated entities, including small businesses;

(II)

effects on economic activity, efficiency, competition and capital formation;

(III)

regulatory and administrative costs of implementation; and

(IV)

costs imposed on State, local and tribal entities;

(vi)

an identification of reasonable alternatives to the regulation, including modification of an existing regulation;

(vii)

an analysis of the costs and benefits, both quantitative and qualitative, of any alternative identified pursuant to clause (v);

(viii)

if the Bureau determines the proposed regulation would increase costs for small businesses, then the Bureau shall consult the Office of Advocacy within the Small Business Administration to determine ways to minimize the effect of direct and indirect costs imposed on small businesses by the proposed regulation;

(ix)

if quantified net benefits of the proposed action do not outweigh the quantified net benefits of the alternatives, a justification of the regulation;

(x)

if quantified benefits identified pursuant to clause (iv) do not outweigh the quantified costs of the regulation, a justification of the regulation;

(xi)

an assessment of how the burden imposed by the regulation will be distributed; including whether consumers, or small businesses will be disproportionately burdened; and

(xii)

when feasible, and using appropriate statistical techniques, a probability distribution of the relevant outcomes of the proposed regulation.

(B)

Assumptions and studies used

With respect to the information required to be included under subparagraph (A), the Bureau will include—

(i)

a discussion of underlying assumptions used as a basis for such information; and

(ii)

a description of any studies or data used in preparing such information, and whether such studies were peer-reviewed.

.