"Judge Amy Berman ruled that the CFPB should continue to get its funds from the Federal Reserve, despite the Fed operating at a loss, and that the White House's new legal argument about how the CFPB gets its funds is not valid. At the heart of this case is whether Russell Vought, President Donald Trump's budget director and the acting director of the CFPB, can effectively shut down the agency and lay off all of the bureau's employees."
"Vought himself has made comments where he has made it clear that his intention is to effectively shut down the CFPB. The White House earlier this year issued a "reduction in force" for the CFPB, which would have furloughed or laid off much of the bureau. The National Treasury Employees Union, which represents the workers at the CFPB, has been mostly successful in court to stop the mass layoffs and furloughs."
Judge Amy Berman ordered the Consumer Financial Protection Bureau to continue receiving Federal Reserve funding despite the Fed operating at a loss and rejected the White House's legal argument about the funding mechanism. The case centers on whether Russell Vought, acting CFPB director, can shut down the agency and lay off all employees. The CFPB has been largely inoperable under the current administration, with employees mostly barred from working and much of its work unwound. The White House issued a reduction-in-force that would furlough many employees. The National Treasury Employees Union sued and won a preliminary injunction blocking mass layoffs. The White House contends the Fed lacks 'combined earnings' to fund the CFPB.
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