The report's CFPB provisions are part of a multi-year effort by House Republicans to reduce the powers of the CFPB. In their most recent effort, House Financial Services Chairman Jeb Hensarling (R-Texas) unveiled regulatory overhaul legislation on Tuesday that would rein in the CFPB.

"The committee believes the Dodd-Frank Wall Street Reform and Consumer Protection Act provides inadequate checks on the CFPB's powers," the appropriations report stated.

Those House GOP plans – including provisions of past appropriations bills – have not been accepted by the Senate.

Last month, the CFPB released proposed rules governing mandatory arbitration clauses found in many contracts. The agency said such clauses in contracts prevent consumers – including credit union members – from joining together in a suit to accuse financial institutions of wrongdoing.

The proposal does not prohibit arbitration clauses, but it specifies the language that may be used in clauses and emphasizes the fact that consumers can join a class-action suit.

Under the arbitration study process outlined by the GOP appropriators, the CFPB would be required to solicit comments on what areas the agency should study. After the CFPB determines the areas it wants to study as part of the arbitration study, it must again solicit comment on that final list.

The resulting study must include – among other things – a comparison of the costs of arbitration to those of litigation, and information in regard to whether the arbitration process is an effective means of resolving disputes. The agency then would be required to publish a tentative list of conclusions and background data, and solicit additional comment before a report can be issued. The study must also be subject to a peer review process.

The appropriations report also detailed many of the issues the CFPB would be expected to examine as part of the study.

The Republican appropriators also criticized the CFPB for its proposed small-dollar lending rules, stating the agency failed to take into account state laws that regulate the lenders.

The panel once again proposed that the CFPB be governed by a commission and be subject to the appropriations process starting in 2018. Currently, the CFPB can draw down money from the Federal Reserve to fund its activities.

CUNA President/CEO Jim Nussle praised the appropriations proposal, stating the arbitration rules should not apply to credit unions.

He also said he is pleased with the committee's directive to the CFPB to more closely consider the impact its rules have on small institutions.

"This report language is another strong expression of congressional intent that will hopefully spur the agency to make necessary changes to its practices," Nussle said in a letter to House appropriators.