{"id":2509312,"date":"2025-11-11T15:39:02","date_gmt":"2025-11-11T20:39:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/trump-administration-determines-cfpbs-funding-mechanism-is-unlawful\/"},"modified":"2025-11-11T15:41:13","modified_gmt":"2025-11-11T20:41:13","slug":"trump-administration-determines-cfpbs-funding-mechanism-is-unlawful","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/trump-administration-determines-cfpbs-funding-mechanism-is-unlawful\/","title":{"rendered":"Trump administration determines CFPB&#8217;s funding mechanism is unlawful"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">16<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Ftrump-administration-determines-cfpbs-funding-mechanism-is-unlawful%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2509312&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>The Trump governance has steadfast that the Consumer Financial Protection Bureau&#8217;s (CFPB) <a href=\"https:\/\/amzn.to\/3YuVZYV\" >current funding mechanism<\/a>, which relies on drawing funds from the Federal Reserve&#8217;s profits, is unlawful. According to a recent legal opinion from the Office of Legal Counsel, the Federal Reserve has not been profitable since 2022, meaning the CFPB cannot legally access funds from the Fed adn is expected to run out of money by early 2026. This ruling coincides with ongoing budget cuts and mass layoffs at the agency, which was created under Senator Elizabeth warren. The administration is preparing a report to Congress about the funding shortfall, but it <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/senate-passes-bipartisan-infrastructure-bill-69-30\/\" title=\"Senate passes bipartisan infrastructure bill 69-30\">remains uncertain<\/a> whether Congress will appropriate new funds. Republicans, who generally oppose the CFPB, have pushed unsuccessfully to defund the agency&#8217;s operating budget. The future of the CFPB remains uncertain amid these financial and political challenges.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<p><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><\/p>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-mobile-menu-button\"><i class=\"tdb-mobile-menu-icon td-icon-mobile\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-header-search-button-mob dropdown-toggle\" data-toggle=\"dropdown\"><i class=\"tdb-mobile-search-icon td-icon-search\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-mobile-menu-button\"><i class=\"tdb-mobile-menu-icon td-icon-mobile\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div class=\"tdb-drop-down-search\" aria-labelledby=\"td-header-search-button\">\n<div class=\"tdb-drop-down-search-inner\">\n<form method=\"get\" class=\"tdb-search-form\" action=\"https:\/\/www.washingtonexaminer.com\/\"><\/form>\n<div class=\"tdb-aj-search\"><\/div>\n<\/div>\n<\/div>\n<p><a href=\"http:\/\/www.washingtonexaminer.com\/#\" role=\"button\" aria-label=\"Search\" class=\"tdb-head-search-btn dropdown-toggle\" data-toggle=\"dropdown\"><i class=\"tdb-search-icon td-icon-search\"><\/i><\/a><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<h1 class=\"tdb-title-text\">Trump administration determines CFPB&rsquo;s funding mechanism is unlawful<\/h1>\n<div><\/div>\n<div class=\"tdb-title-line\"><\/div>\n<\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div id=\"Brid_2398605\" class=\"tpd-featured-video bridtv\"><\/div>\n<p>The <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/cfpb\/\">Consumer Financial Protection Bureau<\/a> said on Monday it cannot legally draw funds from the Federal Reserve and expects to run out of funding by early 2026.<\/p>\n<p>The announcement comes as the Trump administration has slashed the watchdog agency, created by Sen. Elizabeth Warren (D-MA), with <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/news\/white-house\/3384140\/consumer-watchdog-agency-begins-sweeping-layoffs-and-changes-in-operations\/\">mass layoffs<\/a> and <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/news\/3469283\/consumer-financial-protection-bureau-survives-latest-gop-threat\/\">budget cuts<\/a> throughout 2025. With the newly announced interpretation, the future of the CFPB hangs in the balance.<\/p>\n<div class=\"recommended-stories\">\n<h2>Recommended Stories<\/h2>\n<ul>\n<li><a href=\"https:\/\/www.washingtonexaminer.com\/policy\/finance\/3878489\/first-round-of-november-social-security-payments-goes-out-in-two-days\/\">First round of November Social Security payments goes out in two days<\/a><\/li>\n<li><a href=\"https:\/\/www.washingtonexaminer.com\/policy\/finance\/3878590\/december-social-security-direct-payment-worth-967-goes-out-21-days\/\">December Social Security direct payment worth $967 goes out in 21 days<\/a><\/li>\n<li><a href=\"https:\/\/www.washingtonexaminer.com\/policy\/finance\/3876881\/first-round-of-november-social-security-payments-goes-out-in-three-days\/\">First round of November Social Security payments goes out in three days<\/a><\/li>\n<\/ul>\n<\/div>\n<div class=\"article-paywall\">\n<p>Lawyers for the Trump administration notified a federal court of their findings in a Monday letter, which came as a filing in the National Treasury Employees Union&rsquo;s lawsuit against acting director of the CFPB<em>&nbsp;<\/em>Russell Vought.<\/p>\n<p>&ldquo;Defendants respectfully submit this notice to inform the Court and the parties that the Consumer Financial Protection Bureau anticipates exhausting its currently available funds in early 2026. Under the Office of Legal Counsel&rsquo;s opinion, issued on Friday, &lsquo;the Federal Reserve currently lacks combined earnings from which the CFPB can draw,&#8217;&rdquo; the <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/storage.courtlistener.com\/recap\/gov.uscourts.cadc.41898\/gov.uscourts.cadc.41898.01208794293.0.pdf\">notice<\/a> from the Department of Justice lawyers reads.<\/p>\n<p>In a Nov. 7 memo, assistant attorney general for the Office of Special Counsel T. Elliot Gaiser wrote that the OSC determined the &ldquo;combined earning of the Federal Reserve System,&rdquo; which fund the CFPB, refer to the profits of the Federal Reserve, and the Federal Reserve has not been profitable since 2022.<\/p>\n<p>&ldquo;If the Federal Reserve has no profits, it cannot transfer money to the CFPB,&rdquo; Gaiser wrote. &ldquo;Because the only lawful source of funding from the Federal Reserve has dried up, the proper method for obtaining additional funds is to request them from Congress.&rdquo;<\/p>\n<p><strong><a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/news\/3469283\/consumer-financial-protection-bureau-survives-latest-gop-threat\/\">A DIMINISHED CFPB, ELIZABETH WARREN&rsquo;S BRAINCHILD, SURVIVES LATEST GOP THREAT<\/a><\/strong><\/p>\n<p>In the DOJ&rsquo;s <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/storage.courtlistener.com\/recap\/gov.uscourts.cadc.41898\/gov.uscourts.cadc.41898.01208794293.0.pdf\">notice<\/a> to the court of the expected lapse in funds, the Trump administration said Vought is &ldquo;preparing a report to the President and to congressional appropriations committees,&rdquo; but that the CFPB &ldquo;does not know whether and the extent to which Congress will appropriate funding&rdquo; for the watchdog.<\/p>\n<p>With a majority in both chambers of Congress, Republicans largely frown upon the CFPB. Senate Banking Committee Republicans sought, unsuccessfully, to <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/news\/senate\/3455275\/byrd-droppings-trump-tax-bill-provisions-ruled-out-senate-parliamentarian\/\">completely defund<\/a> the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/scotus-overturns-chevron-doctrine-upends-administrative-state\/\" title=\"SCOTUS Overturns Chevron Doctrine, Upends Administrative State\">agency&#038;rsquo<\/a>;s operating budget this year.<\/p>\n<\/div>\n<\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Trump admin rules CFPB funding from Fed unlawful<\/p>\n","protected":false},"author":3976,"featured_media":2509313,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2025\/10\/AP25272777041233_ee109f.jpg?w=696","fifu_image_alt":"","footnotes":""},"categories":[33651,538],"tags":[50142,66885,3634],"class_list":["post-2509312","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-western-journal","category-washington-examiner","tag-cfpb","tag-funding-mechanism","tag-trump"],"fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2025\/10\/AP25272777041233_ee109f.jpg?w=696","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2509312","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/3976"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2509312"}],"version-history":[{"count":3,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2509312\/revisions"}],"predecessor-version":[{"id":2509316,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2509312\/revisions\/2509316"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2509313"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2509312"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2509312"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2509312"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}