Overview
- U.S. District Judge Amy Berman Jackson directed the CFPB to keep requesting money and required the Federal Reserve to provide funding from its combined earnings even when the Fed records losses.
- Jackson found the administration’s decision to halt transfers violated her March injunction that preserves the agency’s operations during ongoing litigation.
- The ruling rebuffs a November Justice Department OLC opinion that claimed no funds were legally available, which the judge said conflicts with Dodd-Frank’s text and purpose.
- The decision arrives just before officials warned cash could be exhausted in early 2026, averting a near-term lapse in payroll and core functions.
- The broader dismantling fight remains active as the full D.C. Circuit agreed to rehear the case, leaving planned mass layoffs and shutdown efforts on hold.