Overview
- The Justice Department’s Office of Legal Counsel concluded the CFPB cannot lawfully draw new funds from the Federal Reserve while the Fed reports losses, citing Appropriations Clause and Antideficiency Act risks.
- Acting Director Russell Vought told the D.C. district court the bureau expects to exhaust available funds in early 2026 without a congressional appropriation and said he will not request additional transfers.
- The CFPB has begun preparing to hand off its remaining enforcement lawsuits and other active litigation to the Justice Department in the coming weeks, with potential effects on case schedules still unclear.
- CFPB leaders told staff that more than 100 employees will be furloughed and referenced an earlier attempt to lay off about 1,400 workers as the agency contracts operations.
- The National Treasury Employees Union asked Judge Amy Berman Jackson to order the administration to seek funding and to clarify that withholding requests would violate the March preliminary injunction, as the bureau drafts contingencies for functions like APOR if operations lapse.