The Supreme Court recently upheld the funding structure of the Consumer Financial Protection Bureau (CFPB), affirming Congress's right to delegate the power of the purse to the Federal Reserve. This decision, seen as a significant victory for the CFPB, has sparked discussions on its implications. Critics argue that the ruling may render the CFPB's general operations illegal, including the enforcement of its rules and major regulations since 2023. The decision has also prompted debates on the appropriations clause and its limits on administrative actions. Some justices endorsed reliance on post-Founding historical practice in their opinions. The ruling, described as a Pyrrhic victory by Hal Scott, is expected to lead to increased enforcement by the CFPB, although it may face new challenges. Republicans in Congress are considering introducing a bill in response to the ruling.
"Originalism Comes to CFPB’s Rescue": Behind Recent 'Progressive' Supreme Court Victories, a Strategic Focus on Text, History https://t.co/vTTOq7IMwy
In her latest Note, @RachelBarkow breaks down Justice Alito's dissent in CFPB v. Community Financial Services Association of America, a case in which the Court considered whether the funding of the CFPB was unconstitutional. https://t.co/v8gdXifG7M
Opinion by George F. Will: The justices, endorsing the CFPB’s structure, are feeding the executive branch’s sense of entitlement. https://t.co/vk69qBtVnf