Applaud Judge Protecting Consumer Watchdog Funding

A federal judge has ordered funding restored to the Consumer Financial Protection Bureau, ruling that Acting Director Russell Vought violated federal law through decisions that effectively sought to defund the consumer watchdog.

The case was brought by 22 states after Vought determined that the CFPB could not request money from the Federal Reserve while the Fed’s interest expenses exceeded its income and decided not to request funding for the agency for fiscal year 2026. The states argued that those decisions violated the Dodd-Frank Act, which established the CFPB’s funding mechanism.

U.S. District Judge Ann Aiken agreed with the states, concluding that the CFPB is required to request the funding reasonably necessary to carry out its responsibilities. She also rejected the administration’s interpretation of the law’s reference to the Federal Reserve’s “combined earnings,” finding that it refers to revenue before expenses are deducted.

Aiken further found that the challenged actions violated the constitutional separation of powers because Congress, through Dodd-Frank, had established how the CFPB would be funded. She vacated both funding decisions and ordered funding restored to the agency.

Add your name to applaud the court ruling requiring the CFPB’s funding to be restored and enforcing the funding system Congress established for the consumer watchdog!