Supreme Court to review constitutionality of funding Consumer Protection Bureau
The Supreme Court will review the constitutionality of the Consumer Financial Protection Bureau’s (CFPB) funding mechanism.
Lower courts have split on the issue of whether the CFPB’s funding through annual transfers by the Federal Reserve violates the Constitution’s Appropriations Clause, which establishes Congress’s power of the purse.
In a brief, unsigned order on Monday, the court announced it will take up the case, indicating at least four justices agreed to do so.
The CFPB was created after the 2008 financial crisis to enforce consumer financial laws, and a coalition of 16 Republican attorneys general want the justices to affirm a lower court decision deeming the funding scheme from the Federal Reserve unconstitutional.
The Biden administration says that lower court decision calls into question virtually every action the CFPB has taken since it was created.
The administration is backed by 21 Democratic state attorneys general and Washington, D.C., who want to reverse the ruling and deem the CFPB’s funding a valid use of Congress’ appropriations power.
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