A federal court has ordered the Consumer Financial Protection Bureau (CFPB) to request necessary funding from the Federal Reserve, blocking what the court called the federal government's "transparent display of partisanship" in attempting to deny the agency resources.
The U.S. District Court for the District of Oregon issued the ruling in response to a lawsuit filed in December 2025 by California Attorney General Rob Bonta and a coalition of 22 attorneys general. The lawsuit challenged the CFPB's November 2025 decision to stop requesting funding, which was based on legal advice that the Federal Reserve's unprofitability made such funding unlawful.
The court found that the decision by the former Acting Director violated the Separation of Powers Clause of the U.S. Constitution. The ruling resolves in large part the ongoing litigation and prevents further interference with the agency's funding.
The CFPB was created to protect consumers in the financial marketplace and performs critical functions necessary to the functioning of the financial system. For the past 14 years, the agency has served as an enforcer and regulator.
According to the attorneys general, the Trump Administration pursued a series of actions intended to debilitate the agency shortly after taking office, including suspending work across the organization, terminating probationary employees, and attempting to issue reduction in force notices to 90 percent of the workforce. Courts previously blocked that workforce reduction effort.