Government Executive: The Supreme Court has delivered a victory for a financial watchdog, and all agencies with alternative funding
Issues
This excerpt is from a piece that originally ran on May 16, 2024.
Afederal financial industry watchdog can continue to operate and maintain its current funding structure, the Supreme Court ruled on Thursday, averting a potential crisis for the agency and others with alternative appropriations mechanisms.
The Consumer Financial Protection Bureau faced an existential threat as the members of the payday loan industry it regulates argued its funding setup was unconstitutional. A 7-2 majority on the top court rejected that argument, saying instead the bureau’s structure is not unusual and in line with many arrangements agencies have enjoyed since the nation’s founding.
[…]
Rakim H.D. Brooks, president of the Alliance for Justice, said the decision would enable CFPB’s work to limit “corporate abuse and greed” to continue.
“It was specifically funded in a distinct way to ensure against political meddling, which is why we’ve seen so many attempts to challenge it through the courts instead,” Brooks said. “Today’s ruling confirms just how flimsy these challenges are and guarantees that the CFPB’s work can continue.”