Overview
- Filed Dec. 22 in federal court in Oregon, the suit challenges Acting Director Russell Vought’s refusal to request Consumer Financial Protection Bureau funding from the Federal Reserve.
- The coalition led by California, New York, Oregon, New Jersey and Colorado says the statute’s reference to the Fed’s “combined earnings” has long meant gross revenue, countering DOJ’s profits-based view tied to Fed losses since 2022.
- Plaintiffs warn the bureau could run out of cash as soon as January, jeopardizing the consumer complaint system and the data-sharing states use to detect and remedy financial harm.
- The complaint contends the funding halt violates separation of powers by undermining Congress’s design for the agency and its mandated operations.
- Related cases by the National Treasury Employees Union and consumer groups in Washington, D.C., and California also seek court orders compelling the CFPB to resume funding requests.