In a recent ruling, a federal district court judge determined the White House cannot cease funding the Consumer Financial Protection Bureau (CFPB). Judge Amy Berman declared that the CFPB should continue receiving funds from the Federal Reserve, rejecting the White House’s argument that the agency’s funding source was unavailable due to the Fed’s losses. The case centers on whether the White House could effectively shut down the CFPB through budget manipulation. The court found the White House’s “combined earnings” argument as an unsupported attempt to starve the CFPB of funding and circumvent a previous injunction protecting its employees.
Read More
The Trump administration, through the Office of Management and Budget, has effectively shut down the Consumer Financial Protection Bureau (CFPB), halting all proposed rules, suspending effective dates on finalized rules, and ceasing all investigations and supervisory activities. This action, following similar efforts against other agencies, aims to curtail the CFPB’s work despite its congressional mandate and significant consumer protection achievements, including securing nearly $20 billion in relief. The administration’s move clashes with Trump’s past populist promises and highlights ongoing tensions between regulatory oversight and deregulation. While the CFPB’s physical headquarters temporarily closed, the agency remains susceptible to further action as the administration seeks to limit its authority.
Read More
John Q. Hosedrinker