Federal Judge Orders Continuation of Funding for Consumer Financial Protection Bureau Amid Legal Challenge
Federal judge Amy Berman Jackson has ordered the Trump administration to continue funding the Consumer Financial Protection Bureau (CFPB), rejecting claims that financial losses in the Federal Reserve preclude such funding. Jackson characterized the administration's workaround, based on an Office of Legal Counsel memo, as a manufactured approach and described efforts to cut funding as an improper end run around an injunction that blocks dismantling of the agency.
Since its establishment in 2011, the CFPB's funding has persisted seamlessly, even during years starting from 2022 when the Federal Reserve's earnings were below interest expenses. The funding was at risk of running out soon, which could have impacted CFPB employees.
The DC Circuit Court of Appeals upheld Jackson's injunction and is scheduled to hear a broader challenge aimed at dismantling the CFPB in February 2026. Senator Elizabeth Warren praised the ruling, noting the CFPB has returned about $21 billion to consumers harmed by banks and large corporations. The White House did not respond to requests for comment following the ruling.
