Sen. Kirsten Gillibrand, Ranking Member of the U.S. Senate Aging Committee, has introduced the Stop the Scammers Act to restore funding to the Consumer Financial Protection Bureau (CFPB), and authorize the CFPB to reward whistleblowers who report wrongdoing.
The act follows the passage of the Republican tax bill, President Trump’s $3.3 trillion One Big Beautiful Bill, which slashed CFPB funding nearly in half, and jeopardized vital protections for victims of scams and fraud.
The Stop the Scammers Act would encourage whistleblowers to come forward by allowing the CFPB to reward whistleblowers with financial compensation from the Civil Penalty Fund. The money for this fund comes directly from monetary penalties imposed on companies and individuals who violate federal consumer financial protection laws. The legislation would also allow whistleblowers to retain independent counsel and protect a whistleblower’s identity. The bill also restores CFPB funding to 12% of the Federal Reserve’s operating budget, ensuring the Bureau can carry out its mission and properly protect Americans.
“Too often, seniors are taken advantage of by scammers who rob them of their hard-earned savings and steal their private information,” said Sen. Gillibrand. “We must do more to stop scammers and protect older adults. As the top-ranking Democrat on the Senate Aging Committee, I know how important the CFPB is for American seniors. The Stop the Scammers Act will restore funding to this vital agency and protect Americans from bad financial actors.”
Section 30001 of President Trump’s One Big Beautiful Bill changes the ability of the CFPB to fund itself by receiving from the Federal Reserve an amount of up to 12% of the Fed’s inflation adjusted profits in 2009 from 12% to 0%. This does not affect the Bureau’s existing ability to request funds from Congress, and will save an estimated $6.36 billion.
“Congress has a mandate to deliver President Trump’s agenda for the American people—and that means streamlining the federal bureaucracy, cutting red tape, and saving taxpayer dollars,” said Senate Banking Committee Chairman Sen. Tim Scott. “As Chairman of the Senate Banking Committee, I’ve worked with my colleagues on the Committee, across the Senate, and on the other side of the Capitol to carefully scrutinize programs and spending within our jurisdiction and identify efficiencies and cost savings. This legislation takes important steps to reduce waste and duplication in financial regulation while bolstering our national security, and I look forward to advancing these provisions as part of the One Big Beautiful Bill.”
Sen. Gillibrand has been a staunch advocate for consumer protection throughout her time in office. As ranking member of the Senate Aging Committee, she has led the fight to protect seniors from financial frauds and scams, raised awareness about predatory scammers targeting seniors, and demanded answers from those attempting to cut funding for agencies like the CFPB. She has also introduced legislation such as the Senior Financial Empowerment Act and the DO NOT CALL Act, as well as the SNAP Theft Protection Act, the core of which was passed into law in 2022.
The Stop the Scammers Act is cosponsored by Catherine Cortez Masto, Senate Democratic Leader Chuck Schumer, Banking Committee Ranking Member Elizabeth Warren, and Sens. Angela Alsobrooks, Richard Blumenthal, Cory Booker, Dick Durbin, John Fetterman, Ruben Gallego, John Hickenlooper, Andy Kim, Amy Klobuchar, Ben Ray Luján, Jeff Merkley, Jack Reed, Jacky Rosen, Bernie Sanders, Tina Smith, Chris Van Hollen, Peter Welch, and Sheldon Whitehouse.
Click here for full text of the Stop the Scammers Act.
