Judge Aiken Orders Restoration of CFPB Funding Amid Vought Defunding Attempt

US District Judge Ann Aiken has ruled that former acting CFPB director Russell T. Vought unlawfully attempted to defund the Consumer Financial Protection Bureau by refusing to request necessary transfers from the Federal Reserve.

A central point of contention was the interpretation of the Dodd-Frank Act, which mandates that the Federal Reserve's Board of Governors transfer funds from its 'combined earnings' to the CFPB. The federal defendants argued that this term referred to the amount remaining after the Federal Reserve's interest expenses were deducted from its revenues.

However, Judge Aiken sided with the plaintiff states, ruling that 'combined earnings' refers to the Federal Reserve's revenue before any expenses are subtracted, thereby affirming a broader basis for the Federal Reserve CFPB transfers.