Judge Slams Door on Trump Plan to Starve Consumer Protection Bureau

A federal judge has dealt a blow to the Trump Administration's effort to cut off funding for the Consumer Financial Protection Bureau (CFPB). U.S. District Judge Ann Aiken granted partial summary judgment to a coalition of 22 states and the District of Columbia, finding former Acting CFPB Director Russell Vought's funding decisions were contrary to law.

The dispute centered on the meaning of 'combined earnings' in the Dodd-Frank Act, which directs the Federal Reserve to transfer funds to the CFPB. Aiken rejected Vought's interpretation that this meant Federal Reserve profits after expenses and ruled instead that it refers to gross revenues before expenses are deducted.

Aiken's decision is a significant win for the coalition of states and the District of Columbia, which had argued that the Trump Administration's actions were an attempt to strangle the CFPB. The case has been ongoing since 2025, with Vought initially requesting $0 from the Fed in February, then later seeking $145 million in January.

A California federal judge previously rejected a similar interpretation of the law by the Administration in March, and this decision is now on appeal before the Ninth Circuit. Aiken's ruling vacated Vought's determination that CFPB funding was unavailable when Fed expenses exceeded income and his decision not to request funding for fiscal 2026.