"According to an announcement from the CFPB on Tuesday, the U.S. Department of Justice's Office of Legal Counsel (OLC) determined that the Federal Reserve System currently has no combined earnings available from which the CFPB may draw funding, as required by Dodd-Frank. The filing also explains that the CFPB is only entitled to the Fed's surplus funds. The Fed has operated at a loss since 2022, Reuters reported. OLC opinions are binding on executive branch agencies, including the CFPB."
"The decision marks another direct effort to dismantle and potentially eradicate the consumer watchdog agency. The bureau said it expects to have enough funds to continue operations through at least Dec. 31, 2025. The CFPB has faced turmoil since Feb. 1, when President Donald Trump dismissed then-Director Rohit Chopra and appointed Treasury Secretary Scott Bessent as acting director. Bessent immediately instructed staff to stop working. A week later, Trump replaced Bessent with Russell Vought,"
The DOJ's Office of Legal Counsel found that the Federal Reserve System currently has no combined earnings available for CFPB funding under Dodd-Frank, and that the CFPB is only entitled to any Fed surplus. The Fed has operated at a loss since 2022. OLC opinions bind executive branch agencies. The CFPB expects sufficient funds to operate through at least December 31, 2025. The bureau has experienced leadership upheaval since February, with the dismissal of Rohit Chopra, interim appointments of Scott Bessent and Russell Vought, halted staff work, a legal effort to terminate 90% of staff, and proposed congressional budget cuts targeting the agency.
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