The Supreme Court of the United States has agreed to review and decide whether the Consumer Financial Protection Bureau (CFPB) has a funding structure that violates the U.S. Constitution. Originally requested to be heard in the current term, the court will not hear the case until next term in October 2023 with a decision to follow in 2024.
Created after the 2008 financial crisis, the CFPB enforces consumer financial laws. The agency is funded through the Federal Reserve and not through the Congressional appropriations process. In October 2022, the Fifth U.S. Circuit Court of Appeals ruled this structure violated the Constitution’s doctrine of separation of powers. The Fifth Circuit decision invalidated the remaining portions of the Payday Lending Rule citing it was a result of the CFPB using unconstitutionally granted funds to promulgate it.
For more information about SCOTUS granting the CFPB’s certiorari petition, please visit the links below.