US Edition21 Democratic-led states sue White House over consumer protection bureau funding
A coalition of 21 Democratic-led states argues the White House's funding halt threatens the agency's ability to handle 3 million consumer complaints annually, risking closure by January.
- On Monday, a coalition of 21 Democratic-led state attorneys general filed suit in U.S. District Court in Eugene, Oregon to block the administration's funding move, naming Russell T. Vought, Acting Director of the Consumer Financial Protection Bureau and the Federal Reserve Board of Governors as defendants.
- The White House argues the CFPB can only draw Fed funds with 'combined earnings', a DOJ opinion treats this as profits while the Fed has been operating at a loss, and lawmakers say it means revenues.
- This year the CFPB curtailed enforcement and dropped notable cases, including actions tied to the Zelle payments app, while the complaint alleges the agency will run out of cash by next month if funding is not restored.
- States warn defunding will disrupt efforts to stop predatory lenders and scammers, depriving states and state attorneys general of access to the CFPB consumer-complaint database tracking millions of complaints.
- Union litigation separately challenges the same funding theory as the White House, while Congress created the CFPB after the mortgage crash, returning nearly $21 billion to more than 205 million Americans.
154 Articles
154 Articles
Brown Leads MD in 47th Suit Against Trump Policies
BALTIMORE, MD – Maryland Attorney General Anthony G. Brown joined 20 other states and the District of Columbia on December 22, 2025, in filing a lawsuit in U.S. District Court in Oregon to block the Trump administration’s efforts to defund the Consumer Financial Protection Bureau. The action marks the 47th lawsuit in which Brown’s office has participated against administration policies since President Donald Trump’s second inauguration on Januar…
New Mexico AG joins federal suit over defunded consumer protection bureau
New Mexico AG Raúl Torrez announced on Dec. 22, 2025 that the state had joined a coalition of AGs suing the Trump administration over its attempts to defund the Consumer Financial Protection Bureau. New Mexico Attorney General Raúl Torrez announced this week the state had joined a coalition of nearly two dozen state attorneys general in a lawsuit against the Trump administration over defunding of the Consumer Financial Protection Bureau. CFPB, t…
Democratic attorneys general file lawsuit against Vought to keep CFPB funded
The Democratic attorneys general for 21 states and the District of Columbia are suing Office of Management and Budget Director Russell Vought, who also serves as the acting director of the Consumer Financial Protection Bureau, to keep the bureau funded. The lawsuit comes at the end of a tumultuous year for the watchdog agency, as President Donald Trump’s administration has slashed the CFPB with mass layoffs and budget cuts throughout 2025. The a…
Democratic AGs sue Trump administration for attempts to defund consumer watchdog agency
(Photo via Consumer Financial Protection Bureau /Flickr)The Democratic attorneys general of 21 states and Washington, D.C., are suing the Trump administration for its attempts to defund the Obama-era federal agency created to protect Americans from consumer fraud and discriminatory lending. After the U.S. mortgage market crashed in 2008 and millions of Americans lost their jobs, savings, retirements and homes, Congress in 2010 established the Co…
21 Democratic-Led States Sue Trump Admin Over CFPB Funding
Attorneys general from 21 Democratic-led states and the District of Columbia filed a lawsuit against the Trump administration on Monday, seeking to block its effort to defund the Consumer Financial Protection Bureau (CFPB) by withholding requests for Federal Reserve funding. The lawsuit, filed in U.S. District Court in Oregon, argues the administration’s position is illegal and undermines congressional intent. The states contend that without fun…
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