Overview
- Democratic attorneys general filed suit in federal court in Oregon seeking an order that Acting Director Russell Vought request lawful CFPB funding from the Federal Reserve.
- The complaint targets a DOJ-backed conclusion that the Fed’s recent losses mean no “combined earnings” are available, which the states say misreads Dodd‑Frank.
- Filings warn the CFPB’s cash could run out by late December or early 2026, potentially taking the consumer complaint system offline and halting required data sharing with states.
- Plaintiffs assert the refusal to fund violates congressional mandates and the Administrative Procedure Act and undermines separation of powers by effectively shuttering a congressionally created regulator.
- The suit follows a year of moves under Vought to scale back the bureau, including attempted mass layoffs that courts have partly blocked, as parallel union and nonprofit cases proceed.