The Obama
Administration has issued a veto message on HR 5973, making appropriations for
Agriculture, Rural Development, Food and Drug Administration, and Related Agencies
programs for the FY 2013. HR 5973 would cut funding for the CFTC and, in the
Administration’s view, would severely
undermine key investments in financial oversight in a manner that would cripple
Wall Street reform.
The Administration strongly opposes the $128 million reduction
in funding from the FY 2013 budget request for the CFTC. Moreover, the $25
million cut from the FY 2012 enacted level would result in furloughs across the
Agency, and would also severely undermine the CFTC's ability to carry out its
market oversight and enforcement functions. More broadly, the funding level
would significantly curtail the Administration's priority of timely, effective
implementation of Wall Street Reform, which includes the CFTC's new
responsibilities to regulate the $300 trillion swaps market.
Reducing the CFTC's capacity to effectively police the futures
and swaps marketplaces would imperil investors' funds and pose a threat to U.S. financial
stability. In addition, the Administration urged Congress to consider the
Budget proposal to implement a CFTC user fee, which would fully offset the FY
2013 Budget request for the Commission. The CFTC is the only Federal financial
regulator not funded in whole or in part through fees paid by its regulated
community.