CFPB Funding Method Found Unconstitutional by Federal Appeals Court
Wall Street Journal, Oct. 19, 2022–Andrew Ackerman (subscription)
A federal appeals court found the U.S. Consumer Financial Protection Bureau is funded through an unconstitutional method. The decision, by a three-judge panel of the Fifth U.S. Circuit Court of Appeals in New Orleans, found the CFPB’s funding structure violated the Constitution’s doctrine of separation of powers, which sets the authority of the three branches of government. Congress has the sole power of the federal purse, and the bureau’s funding structure undercuts that authority, the court said.