A federal judge in Oregon last week ruled that the Trump administration must continue funding the Consumer Financial Protection Bureau, reaching a decision similar to two other federal courts in separate lawsuits.
The CFPB is unique among federal agencies in that its funding comes directly from the Federal Reserve based on a request from the bureau’s director. Last year, Russell Vought — the former acting director — announced he would not ask the Fed for the agency’s next appropriation, arguing he can only do so if the Fed makes a profit. Several lawsuits soon followed.
Federal courts in Washington, D.C., and California ruled that the explanation the administration used to reject CFPB funding was inconsistent with federal statute. U.S. District Judge Ann Aiken reached a similar conclusion in a lawsuit brought by a coalition of Democratic state attorneys general, finding that the administration’s actions “were contrary to law, constitute unlawfully withheld agency action, and violate the constitutional separation of powers.”
Since the earlier court rulings, the administration has requested funding for the CFPB from the Fed. In addition, House Republicans have introduced legislation to instead fund the bureau through the congressional appropriations process.
