CFPB Cites DOJ in Claiming It Can’t Fund Itself From Fed Pool

The Consumer Financial Protection Bureau told a federal court it’s legally barred from drawing funds from the Federal Reserve and expects available funds to run out by early 2026.

The administration in a legal memo last week determined that, because the Fed currently lacks “combined earnings,” there are no funds the CFPB can draw from. The consumer watchdog agency cited the memo in a Monday notice to the US District Court for the District of Columbia in a case brought by an employee union challenging attempts to shut down the bureau.

Unlike other federal agencies, the CFPB receives its funding ...