Administration claims CFPB barred from receiving Fed funds

The administration considers the CFPB legally prohibited from receiving additional Federal Reserve funds, it said in a Monday court filing, which notes the bureau anticipates “exhausting its currently available funds in early 2026.”

America’s Credit Unions and its members have long urged reforms to the CFPB’s structure and funding process, emphasizing the importance of congressional oversight and greater accountability. The association has consistently called for subjecting the bureau to the appropriations process and establishing a bipartisan commission to lead it, aligning with recent developments in the administration’s position.

The Department of Justice’s Office of Legal Counsel released an opinion that “the Federal Reserve currently lacks combined earnings from which the CFPB can draw,” meaning any additional funds for the bureau would need to be appropriated by Congress.

Acting CFPB Director Russell Vought “anticipates preparing a report to the President and to congressional appropriations committees, as statutorily required, identifying the ‘funding needs of the Bureau,’” according to the filing.

America’s Credit Unions is monitoring the latest developments, and previously wrote to Vought seeking further insight on the CFPB’s operations and funding strategy, urging the bureau to prioritize its focus on harms to consumers. The association has also advocated for several reforms to the CFPB to strengthen accountability and transparency, including subjecting it to the congressional appropriations process and restructuring its leadership to a bipartisan board.