Judge Blocks Trump Effort to Defund Consumer Watchdog Agency
A federal judge in Oregon has rejected an effort by the Trump administration to withhold funding from the Consumer Financial Protection Bureau (CFPB). The ruling, made by U.S. District Judge Ann Aiken, states that the CFPB must seek the necessary funding to continue operating.
The move was challenged by a multistate coalition co-led by New Jersey Attorney General Jennifer Davenport, who said the Trump administration's attempt to cut off funding for the consumer watchdog agency was an effort to 'kneecap' it. The CFPB has returned over $21 billion to more than 205 million consumers since its creation in the aftermath of the Great Recession.
The coalition argued that refusing to seek funding for the CFPB violated federal law and the U.S. Constitution's separation of powers. Judge Aiken agreed, stating that former acting CFPB Director Russell Vought's decision not to request funding from the Federal Reserve was unlawful.