A federal judge on Tuesday blocked the Trump Administration from defunding the Consumer Financial Protection Bureau (CFPB).
US District Judge Amy Berman Jackson, an Obama appointee, ruled that the White House has to use funds from the Federal Reserve to continue funding the CFPB.
OMB Director – and Acting Director of the CFPB Russ Vought earlier issued a “reduction in force” (RIF) for the CFPB after Trump shut down the agency shortly after he was sworn into office.
The Federal Reserve has been operating at a loss since 2022 thanks to Bidenflation.
CBS News reported:
The White House may not stop funding the Consumer Financial Protection Bureau, a federal judge ruled Tuesday, days before funds at the bureau were likely to run out and the consumer finance agency would lack the funds to pay its employees.
U.S. District Judge Amy Berman ruled the CFPB can continue to get its funds from the Federal Reserve, though the Fed is operating at a loss, and the White House has made a new legal argument that way the CFPB gets its funds is not valid.
At the heart of this case is whether White House Office of Management and Budget Director Russell Vought, who is also the acting director of the CFPB, can effectively shut down the agency and lay off all of the bureau’s employees.
The CFPB has largely been inoperable since President Trump was sworn into office nearly a year ago.
Its employees are mostly forbidden from doing any work, and most of the bureau’s operations this year has been to unwind the work it did under President Biden and even under Mr. Trump’s first term.
Earlier this year, President Trump began cleaning house after he fired Rohit Chopra, the Director of the Consumer Financial Protection Bureau.
Rohit Chopra was a toxic Biden holdover who previously threatened banks that refused to give credit lines and loans to illegal aliens.
Obama-appointed Judge Amy Berman Jackson previously barred the Trump Administration from firing CFPB workers without cause.
