The US Supreme Court will consider whether the Consumer Financial Protection Bureau’s funding system is constitutional, taking up a case President Joe Biden’s administration says is casting doubt on every action taken by the agency over 12 years.
The showdown centers on a never-enforced payday-lending rule that the 5th US Circuit Court of Appeals threw out in the face of an industry challenge. The 5th Circuit said the CFPB, which gets funding through the Federal Reserve, was set up in violation of the constitutional provision that requires a congressional appropriation for government spending.
