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DOJ Says CFPB Cannot Tap Fed Funds, Setting Up Early-2026 Cash Exhaustion

An OLC opinion interprets "combined earnings" as profits in light of Federal Reserve losses since 2022.

Overview

  • In a court filing, the administration reported the CFPB expects to exhaust its remaining funds in early 2026 and has sufficient cash to operate through at least Dec. 31, 2025.
  • Relying on the new OLC opinion, the DOJ told the court the bureau is legally barred from requesting Federal Reserve transfers because the Fed currently has no combined earnings.
  • The filing says Acting Director Russell Vought is preparing a report to the President and congressional appropriations committees outlining the bureau’s funding needs.
  • Most CFPB operations and enforcement have been paused as litigation continues, with the D.C. Circuit considering a possible en banc review of the union’s challenge to large reductions-in-force.
  • Previous rulings, including a 2024 Supreme Court decision, upheld the CFPB’s funding structure, even as Republicans cut the agency’s 2025 funding cap and key Democrats denounce the new interpretation.