Last year, the Government Accountability Office determined that the bureau’s guidance was technically a rule, a decision that gave Congress authority to use the Congressional Review Act to kill it. While several rules developed toward the end of the Obama administration have been nullified by this Congress, rescinding the auto financing rule was considered unusual since it is an older provision that has been in place for years.
Representative Maxine Waters of California, the top Democrat on the House Financial Services Committee, warned on Tuesday that Republicans were opening a Pandora’s box that could herald the repeal of rules that have been in place for years, potentially harming consumers in a variety of ways. She pushed back against the suggestion that the consumer bureau rule relied upon bad data and said killing it would hurt minorities.
“This is about discrimination,” Ms. Waters said.
Republicans and Democrats have long been at odds over the mandate of the Consumer Financial Protection Bureau, which was created from the 2010 Dodd-Frank Act. Republicans have long derided the agency for overstepping its bounds and last year, Mr. Trump installed Mick Mulvaney, his budget director, to run the bureau on an interim basis. Since then, Mr. Mulvaney has worked hard to scale back its ambitions and freeze much of its enforcement activities.
While lawmakers continue to disagree over portions of the Trump administration’s regulatory agenda, Republicans and Democrats are nearing agreement on the first significant bipartisan bill to alter the Dodd-Frank Act.
House Republicans, who had been pushing for a more expansive financial overhaul bill that would eliminate the Consumer Financial Protection Bureau and make other sweeping changes, appear ready to accept the more limited Senate bill that passed this year. That bill would largely ease regulations that largely apply to community banks.
Representative Paul D. Ryan, Republican of Wisconsin and the House speaker, said on Tuesday that he had reached an agreement with the Senate majority leader, Mitch McConnell, to move forward with a vote on the Dodd-Frank bill in the House. He said that the House would also send to the Senate a package of other pieces of financial overhaul legislation that the House has been working on that they believe would add to that bill.
Additional pieces of legislation that stray too far from what the Senate passed on a bipartisan basis are unlikely to pass in the Senate, where Republicans have a very slim majority.
Mr. Ryan did not indicate when he planned to hold a vote, but lawmakers and administration officials have signaled that it could be in the coming weeks.