On May 16, 2024, the ABC News reported that the Supreme Court rejected a conservative-led attack that could have undermined the Consumer Financial Protection Bureau. The justices ruled 7-2 that the way the CFPB is funded does not violate the Constitution, reversing a lower court decision.
Unlike most federal agencies, the CFPB does not rely on the annual budget process in Congress but gets its funding directly from the Federal Reserve, about $600 million per year. In 2022, a New Orleans-based Court of Appeals ruled that the funding structure violated the appropriations clause in a decision that also invalidated the regulation at issue.
Read the ABC News’ report here.