From Pymnts · PYMNTS · · 1m 20s
Judge Blocks CFPB Funding Cut
Judge stops Trump administration from cutting CFPB funding.
In brief
Judge stops Trump administration from cutting CFPB funding. A federal judge blocked Trump administration efforts to withhold Consumer Financial Protection Bureau funding, ruling the agency's refusal to seek Federal Reserve funds violated constitutional separation of powers. Originally reported by Pymnts.
Court rejects Trump funding cut
A court rejected Trump administration attempts to withhold funding from the Consumer Financial Protection Bureau, per Bloomberg Law.
State attorneys general sue
More than 20 Democratic state attorneys general filed a case in December 2025 to stop the funding cut.
CFPB refused Fed funding
The CFPB under former acting Director Russell Vought refused to seek funding from the Federal Reserve, claiming it could not do so while the central bank was not profitable.
State complaints at risk
State attorneys general argued that CFPB funding cuts would force the agency to shut down its consumer complaint database, harming states that use data for bank lending compliance.
Judge rules on separation of powers
The judge ruled the CFPB’s decision not to seek funding was improper and violated constitutional separation of powers.
Oregon AG calls it a win
Oregon Attorney General Dan Rayfield called the ruling a win for Oregonians, stating the CFPB protects consumers from financial tricks and traps.
At a glance
A federal judge blocked Trump administration efforts to withhold Consumer Financial Protection Bureau funding, ruling the agency's refusal to seek Federal Reserve funds violated constitutional separation of powers.
