Justice Samuel Alito and Justice Neil Gorsuch opposed The Supreme Court’s 7-2 vote upheld the agency’s funding mechanism as constitutional.
While most federal agencies receive funding through Congress’ government appropriations process, the CFPB currently withdraws funds from the Federal Reserve that the director determines are “reasonably necessary to carry out its operations.”
Because of this funding mechanism, the CFPB has long been a target of Republican attacks by lawmakers. too little control Beyond the agency.
“Unfortunately, today’s decision leaves the appropriations provision a mere vestige,” Alito wrote. “The court upholds a novel legal system that allows the powerful Consumer Financial Protection Bureau (CFPB) to fund its own agenda without any control or oversight from Congress.”
The majority opinion supporting the Biden administration was written by the justices. clarence thomas, known as one of the Supreme Court’s most conservative justices. He was joined by Chief Justice John Roberts, conservative Justices Brett Kavanaugh and Amy Coney Barrett, and the high court’s three liberal justices.
The justices’ decision ended the battle that defined the case. Biggest legal threat Since its creation in response to the 2008 financial crisis, it has been entrusted to the CFPB to crack down on predatory lending and enforce consumer protection laws.
The challenge to that funding mechanism was brought by two lender groups and supported by Republican state attorneys general across the country.
The Hill’s Ella Lee has more.
