Union urges judge to order Trump officials to fund CFPB
A federal employees’ union has asked a U.S. judge to compel the Trump administration to restore funding to the Consumer Financial Protection Bureau (CFPB), warning that the agency could run out of cash by the end of the year.
In a court filing on Sunday, the National Treasury Employees Union and other plaintiffs challenged officials’ claims that they lack the legal authority to fund the CFPB. The bureau, which President Donald Trump has long sought to dismantle, is currently led by Acting Director and budget chief Russell Vought, who has shut down most of the agency’s activities, News.Az reports, citing Reuters.
The CFPB is unusual among federal agencies because it does not rely on congressional appropriations. Instead, it draws funding directly from the Federal Reserve—a structure designed to insulate it from political pressure. Earlier this month, however, the bureau told the court it could not request additional money because the law requires that funds come from the Fed’s “combined earnings,” and the central bank is operating at a loss.
The union argued that this interpretation “cannot be squared with the text, purpose, or history of the statute,” accusing the government of attempting to circumvent an earlier injunction that blocked the administration from effectively dismantling the CFPB.
The U.S. Supreme Court ruled last year that the CFPB’s funding mechanism is constitutional.
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