CFPB Says Money Poised to Run Out After Opinion on Fed Funding
The Consumer Financial Protection Bureau (CFPB) has warned that its funding is set to run out by the end of the year. This follows a new legal opinion from the Trump administration that prevents the CFPB from drawing money from the Federal Reserve, which has been the bureau's primary source of funding. The CFPB, an independent federal agency, was established in 2010 to protect consumers from unfair, deceptive, or abusive practices in the financial sector. The agency's funding comes from the Federal Reserve rather than congressional appropriations, which was intended to shield it from political interference. The CFPB has informed a federal court that the Trump administration's legal opinion has put the agency on a course to deplete its funding by the end of 2022. This development raises concerns about the CFPB's ability to continue its consumer protection efforts effectively.
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