The Future of CPSC’s Budget

The House Subcommittee on Innovation, Data, and Commerce (the “Subcommittee”) recently held a hearing on the Consumer Product Safety Commission’s (CPSC) budget, which was cut by $1.525 million from Fiscal Year (FY) 2023 to 2024 and could face more cuts in FY 2025. The hearing was the first time since the summer of 2019 that Congress has held an oversight hearing for CPSC.

Four CPSC Commissioners and the Chair spoke on behalf of CPSC, which is requesting a budget of $183.05 million for FY 2025. If approved, it would mean an increase of over $30 million from CPSC’s FY 2024 budget. Most of the requested increase is intended to cover salaries and benefits.

According to Chair of the Energy and Commerce Committee, Representative Cathy McMorris Rodgers, and Chair of the Subcommittee, Representative Gus Bilirakis, the hearing was necessary to address how to re-focus CPSC for its intended purpose—keeping consumers safe. In a statement issued before the hearing, Chairs Rodgers and Bilirakis noted, “The Consumer Product Safety Commission…has a long history of important, bipartisan work that has helped raise the standard of safety for the goods that people utilize every single day from infant sleeping products to home improvement supplies. More recently, however, the Biden administration has been pushing the CPSC away from its core safety mission towards a radical rush to green agenda, prioritizing actions like banning gas-powered appliances, which millions of households rely on. We look forward to hearing from CPSC Chair Hoehn-Saric and the other Commissioners and discussing how we can return the agency to focusing on its intended mission of keeping the American people safe.”

All five Commissioners spoke, emphasizing that CPSC carries out its mission in a myriad of ways—by, for example, developing voluntary standards, issuing and enforcing mandatory standards and bans on hazardous products, recalling unsafe products, investigating potential product hazards, and informing and educating the public on dangers associated with consumer products. The Commissioners argued that these activities cannot be carried out effectively without sufficient funding.

But some Commissioners’ comments extended beyond the scope of the budget, asserting CPSC has faced recent challenges. For instance, CPSC expressed the difficulty of addressing the rising ubiquity of lithium-ion batteries and the increasing number of imports from e-commerce companies located outside the U.S., and establishing guidance for household products that use machine learning technology with a stagnant budget. Other speakers, including Illinois Congresswoman Jan Schakowsky, were also critical of CPSC’s current statutory cap on civil penalties, noting that for many large corporations, the prospect of a $17.5 million fine offers little deterrence.

The Commissioners argued that if CPSC does not receive the budget that the agency says it needs to continue operating at its current capacity, CPSC could face difficult choices moving forward. According to the Commissioners, CPSC may be forced to pick and choose its priorities, which could impact safety standards, screenings of imported products, investigations, and other activities in the years to come.

CPSC’s request for a significant budget increase comes at the same time that the House Committee on Small Business opened an investigation into the actions of CPSC Commissioner Richard Trumka for potential violations of the Consumer Product Safety Act. The investigation is the result of multiple instances of overreach from Trumka during his short tenure, including implying in an interview with Bloomberg that CPSC was considering banning gas stoves, calling them “a hidden hazard.” Trumka also released a unilateral public statement earlier this year, encouraging retailers to stop selling weighted infant swaddles and blankets, labeling the products “unsafe.” Trumka’s statements prompted significant industry backlash, including the New Civil Liberties Alliance voicing its intent to file suit against CPSC and Commissioner Trumka for his disparaging statements.

CPSC made its FY 2025 budget request to Congress in March 2024, but it is unclear when Congress will decide whether to give CPSC the resources it has requested.