WASHINGTON — Following a court ruling, the Office of Management and Budget has moved to draw $145 million from the Federal Reserve to finance the Consumer Financial Protection Bureau through the second quarter of 2026, continuing the Bureau’s unique funding structure amid ongoing political and legal scrutiny.
The Trump administration’s been seeking to shut down the Bureau.
The request was submitted by the OMB to the Federal Reserve, which is required by law to fund the Consumer Financial Protection Bureau outside the congressional appropriations process.
Under the Dodd-Frank Act, the CFPB may request up to a capped percentage of the Federal Reserve’s operating expenses to cover its budget. The Fed transfers the funds upon request and does not exercise control over how the bureau spends the money.
Funds to Mid-2026
The latest request would cover the CFPB’s operating costs into mid-2026, according to numerous media outlets. The Bureau uses the funds to support supervision and enforcement of consumer financial protection laws covering mortgages, credit cards, student loans, payments and other financial products.
As the CU Daily has been reporting, the CFPB’s funding mechanism has been a recurring flashpoint in Washington. Republican lawmakers have long argued that the Bureau’s independence from Congress’ annual appropriations process limits accountability, while Democrats say the structure protects the agency from political pressure by regulated industries.
The Trump administration has moved aggressively to defund the CFPB and shut it down, letting go many of its more than 1,200 employees.
Supreme Court Upholds Funding
The Supreme Court last year upheld the CFPB’s funding arrangement, rejecting arguments that it violates the Constitution’s appropriations clause. The decision removed a major legal cloud over the agency but did not end efforts by some lawmakers to restructure or limit its authority. But it did result in the request for the operating funds for 2026.
