05.16.24

Supreme Court Rejects Challenge to Consumer Watchdog CFPB

by: Ann E. Marimow and Justin Jouvenal

The U.S. Supreme Court rejected a broad challenge to the U.S. Consumer Financial Protection Bureau (CFPB), reversing a lower-court ruling that would have undermined the watchdog agency. The CFPB case is one of several the Supreme Court heard this term that challenge the power of federal agencies. The court upheld as constitutional the bureau’s funding mechanism, which is based on profits from the Federal Reserve, rather than an annual appropriation. The case involved a decision by the U.S. Court of Appeals for the 5th Circuit that said the funding mechanism Congress adopted to ensure the CFPB’s independence violated the Constitution’s command requiring congressional appropriation of money.

Read the full article on The Washington Post