Trump Administration Declares CFPB Funding Illegal
The decision, disclosed in a court filing, puts the Consumer Financial Protection Bureau on track to shut down in ‘early 2026’ when its remaining cash runs out.
The Trump administration has formally determined the Consumer Financial Protection Bureau’s current funding mechanism is unlawful, a move that puts the agency on track to close in the coming months when its existing cash runs out.
The decision, disclosed in a court filing late Monday, marks the administration’s most direct effort yet to dismantle the consumer watchdog and sets up a new front in the ongoing legal battle over its future. The administration said it now considers the CFPB legally barred from seeking additional money from the Federal Reserve, which is the agency’s typical source of funding.
In the filing, the CFPB said it has enough money to last “at least” through the end of the year but “anticipates exhausting its currently available funds in early 2026.”
The move would leave the CFPB without money to operate starting next year, even to carry out its required activities, unless Congress passes fresh funding for the agency. That is unlikely, given widespread Republican opposition to the CFPB.