Supreme Court Upholds CFPB Funding Structure in 7-2 Decision on Thursday

May 16, 2024, 02:23 PM

The U.S. Supreme Court has upheld the funding structure of the Consumer Financial Protection Bureau (CFPB) in a 7-2 decision on Thursday, ruling that it complies with the Constitution's Appropriations Clause. Justice Clarence Thomas authored the majority opinion, reversing a lower court ruling from the Fifth Circuit. The decision is a significant victory for the Biden administration and a setback for conservative critics and the payday loan industry, which had challenged the CFPB's funding mechanism as unconstitutional. Justices Samuel Alito and Neil Gorsuch dissented.