"In a 32-page decision, DC district judge Amy Berman Jackson said that this novel workaround by the Trump administration to starve the agency of funding was manufactured by the defendants and based solely on an office of legal counsel memo, which said that there were no combined earnings available from the Fed for the CFPB since the agency doesn't receive its appropriations from Congress."
"Earlier this year, the National Treasury Employees Union, which represents the workers at the CFPB, sued Vought, and ultimately secured an order from Jackson that stopped the administration from dismantling the consumer watchdog, and blocked mass firings. Today, she added that Vought's argument is not a valid justification for the agency's unilateral decision to abandon its obligations under the injunction."
A federal judge blocked an administration effort to cut off funding for the Consumer Financial Protection Bureau and ordered funding to continue. The acting director, Russell Vought, claimed the Federal Reserve's losses made it unable to fund the CFPB. Judge Amy Berman Jackson found that the administration's funding workaround was manufactured and relied solely on an office of legal counsel memo. The National Treasury Employees Union successfully sued to prevent dismantling and mass firings. Jackson ruled Vought's argument did not justify abandoning obligations under the injunction. The DC circuit upheld the injunction and will hear the broader dispute in February 2026.
Read at www.theguardian.com
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