A federal employees’ union has urged a U.S. judge to compel the Trump administration to resume funding for the Consumer Financial Protection Bureau (CFPB), warning that the agency could exhaust its cash reserves by year-end. The National Treasury Employees Union, along with other plaintiffs, disputed the government’s claim that it is legally unable to provide additional funding.
The dispute stems from the administration’s argument that the CFPB cannot request funds from the Federal Reserve because the law directs financing from the Fed’s “combined earnings,” which officials say have turned negative. The union countered that this interpretation contradicts the statute’s intent and accused the government of attempting to bypass a prior injunction preventing the dismantling of the agency.
Since taking office, President Donald Trump has sought to curb the CFPB’s operations, appointing budget director Russell Vought as acting head. While courts have halted efforts to eliminate most of the agency’s staff, many CFPB activities have been shuttered. The U.S. Supreme Court upheld the bureau’s funding structure last year, adding further weight to the ongoing legal battle.
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