Union Urges Court to Compel Trump Administration to Restore CFPB Funding

A major federal employees’ union is asking a federal judge to force the Trump administration to resume funding for the Consumer Financial Protection Bureau (CFPB), warning that the agency could run out of money by the end of the year. In a recent filing, attorneys for the National Treasury Employees Union argued that officials are wrongly claiming they lack legal authority to fund the CFPB, a move they say undermines both the law and the agency’s mission.

Since taking office, President Donald Trump has repeatedly targeted the CFPB, an institution created to protect consumers from abusive financial practices. After appointing budget director Russell Vought as acting head, the administration has pushed to dramatically shrink the agency. While a court has blocked Vought’s effort to dismiss the majority of its workforce, most CFPB operations have already been significantly scaled back.

The CFPB’s unique funding structure—designed to ensure independence from political pressure—pulls money directly from the Federal Reserve rather than through congressional appropriations. Earlier this month, however, the administration told the court it could not legally request additional funds because the authorizing law requires that CFPB funding come from the Fed’s “combined earnings.” With the Federal Reserve currently operating at a loss, the administration argued, there are no earnings to draw from.

The union forcefully disputed this interpretation, calling it inconsistent with both the purpose and the history of the statute. They accused the administration of attempting to bypass a previous injunction that prevents the government from effectively dismantling the CFPB.

The U.S. Supreme Court upheld the constitutionality of the bureau’s funding structure last year, strengthening the union’s position that the administration must comply with statutory requirements and ensure the agency’s continued operation.