Source: Politico
“The Trump administration has formally determined the Consumer Financial Protection Bureau’s current funding mechanism is unlawful, a move that puts the agency on track to close in the coming months when its existing cash runs out. The decision, disclosed in a court filing late Monday, marks the administration’s most direct effort yet to dismantle the consumer watchdog …. A new opinion from the Justice Department’s Office of Legal Counsel, submitted in court, contends that the CFPB cannot draw money from the Federal Reserve currently because the agency is only entitled to the central bank’s surpluses and the Fed has operated at a loss since 2022. The Dodd-Frank Act, which created the CFPB, requires the Fed to transfer from the ‘combined earnings of the Federal Reserve System’ the amount that the CFPB director determines is necessary to operate the agency, with certain limits.” (11/11/25)