The Trump Administration’s Battle Over CFPB Funding Continues
In a recent decision by Judge Amy Berman Jackson, the Trump administration’s argument that the Federal Reserve lacks the funds to support the Consumer Financial Protection Bureau (CFPB) was dismissed as a “transparent attempt” to circumvent the court’s injunction. This ruling is just the latest development in an ongoing struggle over the bureau’s existence.
Since taking office, Trump has made several attempts to undermine the CFPB, including firing Director Rohit Chopra and restructuring the agency under White House Budget Director Russell Vought. However, each of these actions has been met with legal challenges, leaving the bureau’s staff and budget in a state of uncertainty.
As the year comes to a close, the CFPB is facing a budget shortfall. In a notice filed in November, the bureau informed the court that it is unable to draw funds from the Federal Reserve under Dodd-Frank due to a lack of “combined earnings.” Despite this, Judge Berman has ordered the administration to find alternative funding sources for the bureau.