Federal Court Orders $145M Drawdown Pending En Banc Hearing On CFPB Funding

Ongoing litigation in NTEU v. Vought has resulted in a critical clarification regarding the CFPB’s operational capacity for 2026. Despite the executive branch’s strategy to halt operations via budget restrictions, a D.C. district court order has mandated that the bureau affirmatively request the funding it is statutorily entitled to under the Dodd-Frank Act.

The Consumer Financial Protection Bureau has responded to a Jan. 9, 2026, court order in NTEU v. Vought to request continued funding from the Federal Reserve and carry out the bureau’s duties for the second quarter of fiscal year 2026.

In its order, the U.S. District Court for the District of Columbia addressed a strategic attempt by the Trump administration to defund the bureau by simply refusing to request its quarterly funding from the Federal Reserve. U.S. District Judge Amy Berman Jackson ruled that to comply with the existing injunction to maintain operations in NTEU v. Vought, the bureau must affirmatively request the funding it is legally entitled to under the Dodd-Frank Act.

“Although I disagree with the opinion and order for the District Court for the District of Columbia in NTEU V. Vought … regarding the Office of Legal Counsel’s conclusion that ‘combined earnings’ refers to the Federal Reserve’s profits, pursuant to that opinion and order, I have determined that $145 million is the amount necessary to carry out the bureau’s authorities for the second quarter of fiscal year 2026,” Vought wrote in the order.

The order emphasizes that the executive branch cannot effectively repeal a congressionally mandated agency through widespread staff layoffs or budget cuts. The CFPB must continue to maintain its staff, contracts, and core functions until the litigation is resolved.

Action in the case also occurred in December 2025, when the U.S. Court of Appeals for the D.C. Circuit issued a per curiam order vacating an August 2025 decision that had previously cleared the way for Vought to implement a “reduction in force” aimed at roughly 90% of the agency’s staff.

The full court’s decision to hear  NTEU v. Vought suggests that the administration’s efforts to downsize the bureau through personnel and budget maneuvers require deeper constitutional review, an issue ACA International previously examined in its reporting on the CFPB’s legal framework. ACA International previously reported on the legal framework surrounding the CFPB. By vacating the previous panel decision, the court effectively reinstated a preliminary injunction that stays the mass layoffs scheduled for early 2026.

On Dec. 30, 2025, Berman Jackson issued a clarification of the injunction, mandating that the agency remain funded at current levels until an Appeals Court hearing in February 2026. The judge expressed sharp skepticism regarding the administration’s claim that a funding “lapse” was imminent.

She described the situation as “manufactured by the defendants” and an “unsupported and transparent attempt” to achieve the shutdown that the court had already forbidden.

Notably, while the administration argued that the Federal Reserve’s lack of profit barred it from funding the bureau, the court noted that the Fed has consistently funded the agency since 2011, regardless of profitability. Politico further reported that the Federal Reserve began running at a profit again in early December 2025.

The core of the dispute rests on whether the executive branch has the authority to effectively dissolve a congressionally mandated agency by removing its personnel and restricting its access to funds. The administration’s Office of Legal Counsel maintains that the bureau must now seek congressional appropriations, a move that would fundamentally alter the CFPB’s independence.

The full D.C. Circuit is scheduled to hear oral arguments on Feb. 24, 2026.

As legal developments around CFPB funding and staffing continue, the core drivers of an effective compliance management system remain unchanged. The underlying federal and state laws and regulations governing the accounts receivable management industry remain unaffected.

ACA has long advocated for two key reforms at the bureau: funding through the congressional appropriations process and leadership by a five-member bipartisan commission.

The weekly ACA Huddle, at 11 a.m. CT on Wednesdays, is an opportunity for members to hear about timely state and federal advocacy developments and compliance updates, ahead of their publication in ACA Daily and other member communications.