S. 4522 – Transparency in CFPB Cost-Benefit Analysis Act

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Updated February 8, 2026 at 4:34 PM UTC

The Transparency in CFPB Cost‑Benefit Analysis Act would require the Consumer Financial Protection Bureau to provide much more detailed information whenever it proposes a new rule. It mandates a full statement of need, a cost‑benefit analysis, and justification for the rule, especially when it may affect small businesses. The bill applies to the CFPB’s rulemaking process and to the entities that would be regulated by those rules.

Key Provisions

Require each CFPB notice of proposed rulemaking to be published in full in the Federal Register
Include a statement of why the regulation is needed and why market, state, local, or tribal authorities cannot address the issue
Identify any duplication or inconsistency with existing federal rules and explain how the new rule is justified or can coexist
Provide a quantitative and qualitative assessment of all direct and indirect costs and benefits, including compliance costs for regulated entities and impacts on competition and capital formation
Identify reasonable alternative approaches and analyze their costs and benefits
If the rule would increase costs for small businesses, the CFPB must consult the SBA Office of Advocacy to seek ways to lessen those impacts
Require justification if the net benefits of the proposed rule are less than those of identified alternatives or if costs exceed benefits
Assess how the regulatory burden is distributed, noting any disproportionate impact on consumers or small businesses, and, when feasible, present probability distributions of outcomes
Disclose underlying assumptions and describe any studies or data used, noting whether they were peer‑reviewed

Legislative Activity

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1 earlier action

SenateIntro Referral Latest Action

Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Banking, Housing, and Urban Affairs Committee

July 13, 2022

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SenateIntro Referral

Introduced in Senate

July 13, 2022

SenateIntro Referral

Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Banking, Housing, and Urban Affairs Committee

July 13, 2022

Bill Text

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Introduced in SenateIssued July 13, 2022

II

117th CONGRESS

2d Session

S. 4522

IN THE SENATE OF THE UNITED STATES

July 13, 2022

Mr. Kennedy (for himself, Ms. Lummis, Mr. Scott of South Carolina, and Mr. Hagerty) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs

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.

.