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CFPB faces obstacles in extracting funds from the Fed and may operate without funding next year.
According to news from CoinWorld, on November 12 (UTC+8), the Consumer Financial Protection Bureau (CFPB) stated in federal court on Monday that the Trump administration has blocked it from withdrawing funds from the Fed based on a new legal opinion, which will result in the agency running out of funds by the end of the year. The CFPB stated that the Department of Justice has ruled that, according to the new interpretation of the term “merged income” in the Dodd-Frank Act, the CFPB's current funding allocation process is illegal. The new legal review equates income with profit, rather than revenue, effectively eliminating the Fed's ability to provide funding to the CFPB. The CFPB expects to have sufficient funds to continue operations at least until December 31. This move is the latest step in a series of actions by the Trump administration, which many consumer rights advocates believe aims to dismantle the CFPB entirely. White House budget director Mulvaney stated last month that he believes he can close the agency “within the next two or three months.”