In a 7-2 decision, the Supreme Court of the United States ruled on May 16, 2024 that the current funding structure for the Consumer Financial Protection Bureau (CFPB) is constitutional. In Consumer Financial Protection Bureau et al. v. Community Financial Services Association of America, Ltd., et al., the Court held that the CFPB’s independent funding through the Federal Reserve System does not violate the Appropriations Clause of the Constitution and separation of powers principles. The Court took this case on appeal from the Fifth Circuit, which we have previously reported on, reversing the judgment and remanding for further proceedings. This decision also resolves a circuit split between the Fifth Circuit as reported above, and the Second Circuit, which we also have previously reported on, and essentially clears the way for the CFPB to pursue its expansive regulatory and enforcement agenda.
For more information, please read our full update.