Federal Judge Orders Trump Administration to Ensure CFPB Funding
Rep. Byron Donalds, R-Fla., discusses his bill aimed at eliminating the Consumer Financial Protection Bureau (CFPB), Elon Musk’s directive regarding federal workers’ documentation, the budget reconciliation process in Congress, and his political aspirations.
A federal judge ruled on Tuesday that the Trump administration is legally obligated to secure funding for the U.S. Consumer Financial Protection Bureau (CFPB). The ruling states that failing to do so would violate a previous court order that prohibits the government from dismantling or shutting down the agency.
In a detailed 32-page ruling, U.S. District Judge Amy Berman Jackson dismissed the administration’s argument that it was legally barred from funding the agency. She characterized the administration’s rationale as “a legally baseless pretext.”
According to Judge Jackson, the administration must keep the agency operational and cannot claim it is legally prevented from obtaining the necessary funding. She noted that the refusal to secure funding was an attempt to bypass an earlier court order.
Jackson highlighted that the administration was “actively and unabashedly trying to shut the agency down again, through different means.” This refers to a March 2025 order in which she issued a preliminary injunction that prohibited the Trump administration from shutting down, dismantling, or disabling the agency.
TRUMP ADMIN APPEALS DECISION BLOCKING DISMANTLING OF CONSUMER FINANCIAL PROTECTION BUREAU
Sen. Tim Scott, R-S.C., and chairman of the Senate Banking, Housing, and Urban Affairs Committee, alongside Sen. Elizabeth Warren, D-Mass., during a hearing in Washington. (Stefani Reynolds/Bloomberg via Getty Images / Getty Images)
The CFPB was established in 2008 by Sen. Elizabeth Warren, D-Mass., as a direct response to the 2007–2008 financial crisis, which revealed significant gaps in consumer protection against risky and abusive financial practices. The agency plays a crucial role in helping consumers by providing educational resources, accepting complaints, and taking action against companies that violate the law. It oversees banks, lenders, and large non-bank entities, including credit reporting agencies and debt collection companies.
Activists rally outside the Consumer Financial Protection Bureau on March 24, 2025, in Washington, D.C. (Alex Wong/Getty Images / Getty Images)
Judge Jackson’s ruling comes at a pivotal moment for the CFPB, which is on the verge of running out of funds.
Jackson emphasized that “not one penny of the funding needed to run the agency that has returned over $21 billion to American consumers comes from taxpayer dollars.” She stated, “Today, the agency is hanging by a thread.”
The entrance to the Consumer Financial Protection Bureau headquarters on February 10, 2025, in Washington, D.C. (Anna Moneymaker/Getty Images)
STATE TREASURERS PUSH CFPB ON THIRD-PARTY FINANCIAL DATA ACCESS RULE
After taking office in early 2025 and gaining control of the CFPB, the Trump administration halted its regular operations. Russell Vought, the acting director of the agency, ordered employees to cease all work in February 2025 and closed the headquarters. In April, layoff notices were issued to over 1,000 workers, although these layoffs have been blocked by a federal judge.
STATE TREASURERS PUSH CFPB ON THIRD-PARTY FINANCIAL DATA ACCESS RULE
The Consumer Financial Protection Bureau headquarters in Washington, D.C., on April 16, 2022. (Samuel Corum/Bloomberg via Getty Images / Getty Images)
The administration’s attempts to shut down or dismantle the agency, including efforts to halt operations, lay off staff, and allow funding to lapse, have consistently been blocked by the courts.
FOX Business reached out to both the CFPB and the White House for comments regarding this ongoing situation.
Reuters contributed to this report.
Rep. Byron Donalds, R-Fla., discusses his bill aimed at eliminating the Consumer Financial Protection Bureau (CFPB), Elon Musk’s directive regarding federal workers’ documentation, the budget reconciliation process in Congress, and his political aspirations.
A federal judge ruled on Tuesday that the Trump administration is legally obligated to secure funding for the U.S. Consumer Financial Protection Bureau (CFPB). The ruling states that failing to do so would violate a previous court order that prohibits the government from dismantling or shutting down the agency.
In a detailed 32-page ruling, U.S. District Judge Amy Berman Jackson dismissed the administration’s argument that it was legally barred from funding the agency. She characterized the administration’s rationale as “a legally baseless pretext.”
According to Judge Jackson, the administration must keep the agency operational and cannot claim it is legally prevented from obtaining the necessary funding. She noted that the refusal to secure funding was an attempt to bypass an earlier court order.
Jackson highlighted that the administration was “actively and unabashedly trying to shut the agency down again, through different means.” This refers to a March 2025 order in which she issued a preliminary injunction that prohibited the Trump administration from shutting down, dismantling, or disabling the agency.
TRUMP ADMIN APPEALS DECISION BLOCKING DISMANTLING OF CONSUMER FINANCIAL PROTECTION BUREAU
Sen. Tim Scott, R-S.C., and chairman of the Senate Banking, Housing, and Urban Affairs Committee, alongside Sen. Elizabeth Warren, D-Mass., during a hearing in Washington. (Stefani Reynolds/Bloomberg via Getty Images / Getty Images)
The CFPB was established in 2008 by Sen. Elizabeth Warren, D-Mass., as a direct response to the 2007–2008 financial crisis, which revealed significant gaps in consumer protection against risky and abusive financial practices. The agency plays a crucial role in helping consumers by providing educational resources, accepting complaints, and taking action against companies that violate the law. It oversees banks, lenders, and large non-bank entities, including credit reporting agencies and debt collection companies.
Activists rally outside the Consumer Financial Protection Bureau on March 24, 2025, in Washington, D.C. (Alex Wong/Getty Images / Getty Images)
Judge Jackson’s ruling comes at a pivotal moment for the CFPB, which is on the verge of running out of funds.
Jackson emphasized that “not one penny of the funding needed to run the agency that has returned over $21 billion to American consumers comes from taxpayer dollars.” She stated, “Today, the agency is hanging by a thread.”
The entrance to the Consumer Financial Protection Bureau headquarters on February 10, 2025, in Washington, D.C. (Anna Moneymaker/Getty Images)
STATE TREASURERS PUSH CFPB ON THIRD-PARTY FINANCIAL DATA ACCESS RULE
After taking office in early 2025 and gaining control of the CFPB, the Trump administration halted its regular operations. Russell Vought, the acting director of the agency, ordered employees to cease all work in February 2025 and closed the headquarters. In April, layoff notices were issued to over 1,000 workers, although these layoffs have been blocked by a federal judge.
STATE TREASURERS PUSH CFPB ON THIRD-PARTY FINANCIAL DATA ACCESS RULE
The Consumer Financial Protection Bureau headquarters in Washington, D.C., on April 16, 2022. (Samuel Corum/Bloomberg via Getty Images / Getty Images)
The administration’s attempts to shut down or dismantle the agency, including efforts to halt operations, lay off staff, and allow funding to lapse, have consistently been blocked by the courts.
FOX Business reached out to both the CFPB and the White House for comments regarding this ongoing situation.
Reuters contributed to this report.
