US Consumer Financial Protection Bureau Faces Hurdles in Accessing Fed Funds

The US Consumer Financial Protection Bureau (CFPB) told a federal court on Monday that the Trump administration, citing a new legal opinion, has blocked it from accessing funds from the Federal Reserve, which would deplete the agency's funds by the end of the year.

The CFPB stated that the Department of Justice has ruled that its current funding appropriation process is illegal based on a new interpretation of the term "combined earnings" in the Dodd-Frank Act. The new legal review equates "earnings" with profits, not revenue, thereby essentially eliminating the Fed's ability to fund the CFPB.

The CFPB expects to have sufficient funds to continue operations at least until December 31. This move is the latest in a series of actions by the Trump administration that many consumer advocates believe aim to completely dismantle the CFPB. White House Budget Director Russ Vought said last month that he believes he can shut down the agency "within the next two to three months."