The Scoop
Rep. Andy Barr, R-Ky., is urging the Consumer Financial Protection Bureau to rescind a Biden-era regulation that requires lenders to collect demographic data on small businesses that apply for loans.
Soliciting information on whether small businesses are woman-, minority- or LGBTQ+-owned counts as a “discriminatory diversity, equity and inclusion (DEI) mandate,” the Kentucky Republican, who chairs the financial institutions subcommittee on the House Financial Services Committee, wrote in a letter to acting CFPB Director Russell Vought shared with Semafor.
Barr argued that as a result, the rule violates President Donald Trump’s executive order on ending federal DEI programs.
Trade associations have long argued that the agency’s policy could decrease access to credit by placing new regulatory burdens on financial institutions. The administration’s attempts to scale back the CFPB are on pause as a court reviews the effort.