A federal judge has affirmed the Trump administration’s legal obligation to fund the Consumer Financial Protection Bureau (CFPB), rejecting a novel legal theory advanced by Acting Director Russell Vought to shut the bureau down.
Attorneys general from 20 states and Washington, D.C., sued the CFPB, Vought and the Federal Reserve Board last December, claiming that the acting director’s refusal to request funding for the bureau — in connection with a separate but ongoing civil lawsuit related to mass layoffs — was unlawful.
The CFPB was created through the 2010 Dodd-Frank Act, passed by Congress in response to the 2008 financial crisis.
Alleging multiple violations of the Administrative Procedures Act, as well as violations of the constitution...