WASHINGTON—The CFPB has announced it is legally prohibited from drawing cash from the Federal Reserve to finance its ongoing operations, but said its current funding should last through the end of this year “at least.”
The Consumer Financial Protection Bureau has declined funding since President Donald Trump took over control of the agency in February and acting Director Russell Vought having called for its elimination, as the CU Daily has reported.
The agency said in a statement on Monday that an administration legal opinion held that because the Federal Reserve System was not currently reporting “combined earnings” under the 2010 statute which created the CFPB, the agency could not lawfully draw funding from the central bank, Reuters reported.
Funds Directly From the Fed
The CFPB receives its funding directly from the Fed, unlike federal agencies for which Congress appropriates money annually.
“The Bureau anticipates having sufficient funds to continue operations until at least December 31, 2025,” the CFPB said in its statement.
Reuters noted that federal courts and the Texas Attorney General have rejected the premise that the CFPB can only draw funds from a Fed surplus, finding that law does not require this.
The Supreme Court in 2025 upheld the constitutionality of the CFPB’s funding structure.
