Union Urges Judge to Force CFPB Funding as Vought Stops Fed Transfers

Overview

• On Sunday, the National Treasury Employees Union asked Judge Amy Berman Jackson to order the administration to secure CFPB funding or request it from the Federal Reserve.
• Acting Director Russell Vought has refused to seek Fed transfers, citing a DOJ Office of Legal Counsel view that Dodd‑Frank bars funding when the Fed lacks “combined earnings,” and the bureau projects its money could be exhausted in early 2026.
• The union seeks clarification that declining to request funds cannot be used to circumvent a March preliminary injunction limiting mass firings and agency dismantling.
• A D.C. Circuit panel vacated the injunction in August but withheld its mandate pending further review, leaving the injunction’s protections in place for now.
• CFPB leaders have begun shifting active litigation to the Justice Department and warned enforcement staff of potential furloughs, while plaintiffs argue the Fed has sufficient earnings and note the Supreme Court has upheld the bureau’s funding structure.