The Senate on Tuesday blocked the nomination of a former Democratic senator to lead the Consumer Financial Protection Bureau, and Republicans said they are pushing to increase funding for the agency.
The measure was voted down by Democrats.
The vote came after a day of debate over the agency’s funding, which could face a delay in the final weeks of the new Congress.
Democrats, in particular, were pushing to boost the agency by $100 million.
They also called for a vote on a bill that would increase funding to help cover the costs of a major overhaul of the federal health care system.
The legislation would create a new national health insurance marketplace for individuals and small businesses.
But Republicans rejected that idea as well, saying it would not do enough to improve the health care delivery system.
Senate Majority Leader Mitch McConnell said the bill would allow companies to “fraudulently enroll people into the exchanges, which is what happened with health insurance under former President Barack Obama.”
McConnell said that the Senate has not “seen a single dime” in recent months for the CFPB.
But the GOP said the CFIBP needs $3.2 billion in additional funding this year.
The CFPBE has faced criticism over its lack of enforcement of the 2010 Dodd-Frank law that imposed limits on bank and other financial institutions’ access to consumer financial products.
Democrats and consumer advocates have long accused the agency of being too slow to crack down on financial institutions.
The agency has also come under criticism for not investigating mortgage fraud, which the bureau said is an ongoing problem.
The new proposal would make $1.9 billion available for CFPBS enforcement and other programs, and would increase the agency to $3 billion from $2 billion.
It would provide $1 billion for the new Consumer Financial Advisory Board.
The bill would also add $2.5 billion to the agency budget for 2017, $4 billion for 2018 and $8 billion for 2019.
The House is expected to approve the measure Tuesday, according to The Associated Press.
The Senate is set to take up a new bill Tuesday to provide $3 trillion for the country’s roads and transit system, as well as $1 trillion for other programs. _____