Union Urges Judge To Order Trump Officials To Fund CFPB

A federal employees’ union has formally requested that a judge order Trump administration officials to fund the Consumer Financial Protection Bureau (CFPB), as the agency faces a potential shutdown due to depleted funds. The National Treasury Employees Union (NTEU) and other plaintiffs argue that the administration is unlawfully refusing to request funding for the CFPB from the Federal Reserve, placing the bureau’s operations in jeopardy.​

Background of the Dispute

The CFPB, unlike most federal agencies, receives its operating budget from the Federal Reserve rather than direct congressional appropriations, making its funding structure distinct and reinforcing its independence from political interference. The Trump administration, with Russell Vought as the bureau’s acting director, has claimed that legal constraints prevent further funding requests because, under a revised interpretation, “combined earnings” of the Fed are currently negative due to interest rate policies.​

Legal Arguments

Attorneys for the NTEU contend that this interpretation contradicts the statutory text and intent of the Dodd-Frank Act, which created the CFPB. They argue that both the Federal Reserve and the CFPB have historically understood “combined earnings” to simply mean all revenue sources, even when expenses exceed earnings, so the agency should still be funded.​

Court Actions and Implications

A federal judge had previously issued a preliminary injunction barring the administration from actions like mass firings or dissolving the CFPB. Now, the union is seeking explicit clarification that refusing to fund the bureau also violates this injunction. The resolution of this request could determine whether the CFPB is forced to suspend its consumer protection activities in early 2026 due to lack of funding.​

The union is specifically asking the court to clarify and enforce its earlier injunction by requiring Trump administration officials to request and secure funding for the CFPB from the Federal Reserve, rather than using a legal interpretation that justifies refusing to do so. The union contends that the refusal to request funding violates the court’s earlier order, which barred actions such as mass firings and the undermining of the bureau’s operations.​

Details of Requested Relief

• The union seeks a court clarification that the administration must not avoid the injunction by declining to request or secure funding for the CFPB.

• They ask the judge to ensure continued operation of the bureau in compliance with prior court orders.

• The motion emphasizes that the administration’s statutory interpretation contradicts the Dodd-Frank Act and prior understanding of Federal Reserve “combine earnings,” and that funding should proceed as usual.​