House Financial Services Chairwoman Maxine Waters (D-Calif.) is urging President-elect Joe Biden to reverse so-called “midnight rulemaking” by outgoing Trump Administration agencies, including the National Credit Union Administration and the Consumer Financial Protection Bureau.
In a letter to Biden last week, Waters said she is concerned about some regulations agencies have issued, adding that if the incoming administration acts swiftly, the impact of those rules could be significantly reduced. Waters did not list the specific regulations she would like addressed.
She urged Biden to issue a memorandum on Wednesday after his inauguration to request that the heads of rulemaking agencies not send proposed or final rules to the Federal Register, that they withdraw any rules that have not yet been published in the Federal Register and that they postpone the effective dates of any final rules that have not yet taken effect.
She specifically mentioned the CFPB, NCUA and prudential financial regulators as the agencies whose rules should be addressed.
The letter to Biden follows one that the chairwoman sent to the regulators last month, warning them not to issue last-minute rules. She added a pointed warning to the letter. “Moreover, because President Trump and your agencies had barred access to President-Elect Biden’s transition team unnecessarily for 20 days, flouting precedence and undermining our democratic traditions, any actions taken by your agencies before inauguration will be met with heavy scrutiny and may be overturned under the Congressional Review Act during the next Congress,” she said.
The Congressional Review Act allows Congress a specific amount of time to rescind rules issued by government agencies.
At the NCUA, board member Todd Harper, who is likely to become chairman once Biden is sworn in, has criticized the agency for what he said is hasty rulemaking. Several of the rules he has criticized were proposed regulations that could be killed after he becomes chairman.
At the CFPB, Director Kathy Kraninger recently released a consumer law task force report that contained a lengthy list of proposals. Most of those proposals are likely to be killed once a Biden-nominated director takes over.