Overview
- U.S. District Judge Amy Berman Jackson ruled the administration cannot refuse transfers to the CFPB and called its new funding theory unsupported.
- The court found the White House’s funding cutoff violated a prior injunction that bars moves to shut down the agency during ongoing litigation.
- The administration argued the Federal Reserve’s paper losses left no ‘combined earnings’ to fund the CFPB, a claim the judge rejected.
- The ruling averts an imminent lapse in pay for CFPB employees after officials warned cash could run out in early 2026 without new transfers.
- Separate from the case, Congress reduced the CFPB’s statutory funding cap this year, signaling tighter budget limits even as current transfers resume.