New Report Reveals Kathy Kraninger's Disastrous Management Record at OMB
Agencies Supervised by Kraninger Responsible for Some of Trump Administration's Most Tragic, Costly Failures; Trump's CFPB Nominee has No Relevant Experience in Banking, Finance, or Consumer Protection
Washington, DC - United States Senator Elizabeth Warren (D-Mass.) today released a new 14-page staff report detailing the dismal management record of Kathy Kraninger, President Trump's nominee to lead the Consumer Financial Protection Bureau (CFPB), ahead of her scheduled Thursday nomination hearing before the Senate Banking Committee. In her current role at the Office of Management and Budget (OMB), Ms. Kraninger is responsible for developing budgets and policy and overseeing agencies that have designed and implemented several of the most disastrous Trump Administration policies. The Administration has defended Ms. Kraninger's nomination solely by citing her management abilities - yet her tenure at OMB has been marked by horrific mismanagement of the Trump Administration's immigration policy, the Puerto Rico recovery, and the affordable housing crisis. Her record of management failure does not justify an important promotion to lead a major federal agency. This report describes three key failures by Ms. Kraninger:
- Ms. Kraninger was responsible for overseeing the agencies that developed and implemented the President's appalling "Zero-Tolerance" policy, which resulted in thousands of children being torn away from their parents. Republican senators described it as a "hot mess" and noted there was "no preparation." Also on Ms. Kraninger's watch, President Trump's promise to secure the border by hiring thousands of new immigration agents has been marked by a lack of preparation and extraordinary waste.
- Ms. Kraninger's inability to ensure an adequate, timely response in Puerto Rico has turned a natural disaster into a man-made disaster. Ms. Kraninger was the OMB official with oversight of the executive branch agencies charged with coordinating disaster recovery in Puerto Rico. But under her direction, OMB's inadequate requests for emergency disaster funding for these agencies resulted in a delayed recovery and potentially undermined recovery for future disasters.
- Budgets that are Ms. Kraninger's responsibility at OMB would make this country's affordable housing crisis even worse. The President's budget prepared under her watch would have gutted housing assistance, which would have resulted in 250,000 fewer people receiving housing vouchers and many more paying larger portions of their income in rent.
Read more details about Ms. Kraninger's failed record here.
On Tuesday evening, all Senate Banking Committee Democrats called on committee Chairman Mike Crapo (R-Idaho) to delay Thursday's scheduled nomination hearing until the Trump Administration provides requested documents about Ms. Kraninger's record at OMB.
As Program Associate Director for General Government at OMB, Ms. Kraninger is responsible for overseeing several federal agencies, including the Department of Justice, Department of Homeland Security, and the Department of Housing and Urban Development. OMB officials in Ms. Kraninger's role have historically been responsible for developing, coordinating, and overseeing administration budgets, policy, and implementation.
Democrats and Republicans have recognized - and the Trump Administration has effectively conceded - that Ms. Kraninger has no experience in consumer finance or protection. Her purported management experience and ability is the sole basis for her nomination. Senator Warren's new examination of Ms. Kraninger's disastrous budgets, policies, implementation decisions, and record of mismanagement does not justify a major promotion to lead the CFPB.
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