I thought one of the Courts just declared this agency unconstitutional?
I thought one of the Courts just declared this agency unconstitutional?
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I read about it here, did a search and couldn’t find it.
In brief, the court ruled that the CFPB was unconstitutional because it was not funded by periodic congressional appropriations.
The CFPB is funded through the Federal Reserve System, but only to a certain level, beyond which it must request additional money through Congress. Most experts agree that this arrangement is constitutional under the Appropriations Clause because the CFPB must ask Congress for any money it receives out of the Treasury, and these experts point to several other federal agencies that operate under similar arrangements, including the FDIC. But these experts did not reckon with the Fifth Circuit’s wrecking ball.