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Supreme Court Upholds CFPB Funding Structure in 7-2 Decision

May 16, 2024, 11:20 PM

The Supreme Court has upheld the funding structure of the Consumer Financial Protection Bureau (CFPB) in a 7-2 decision, confirming its constitutionality. This ruling is a significant victory for the agency, which was created in 2010 and is funded directly by the Federal Reserve rather than through the annual budget process in Congress. The decision, written by Justice Clarence Thomas, was supported by a majority of justices, including some who typically align with conservative views. Justices Samuel Alito and Neil Gorsuch dissented. The ruling ensures that the CFPB can continue its mission to protect consumers from financial scams and predatory practices, having already returned over $20 billion to consumers since its inception. The decision was praised by several lawmakers, including Senator Elizabeth Warren, who was instrumental in the CFPB's creation. Critics, however, argue that the funding structure grants the agency too much autonomy and lacks transparency.