A coalition of Democratic state attorneys general has sued the Trump administration to stop the complete defunding of the Consumer Financial Protection Bureau (CFPB).
In the lawsuit, the attorneys general pointed out that Russ Vought, the acting CFPB director, is refusing to request any funding from the Federal Reserve. As a result, the lawsuit stated, the CFPB will run out of money in January and not be able to operate.
The lawsuit seeks a court order preventing the administration from completely defunding CFPB.
The attorneys general argued the CFPB has a legal obligation to provide states with consumer complaints, which cannot be accomplished without the necessary funds, and they added the elimination of CFPB funding violated the Separation of Powers principle, as the agency was established by Congress and cannot be unilaterally dismantled by the Executive Branch.
The attorneys general behind the lawsuit represent Arizona, California, Colorado, Connecticut, Delaware, the District of Columbia, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, North Carolina, Oregon, Rhode Island, Vermont, and Wisconsin.
“This is yet another attempt by the Trump Administration to dismantle and destroy the federal government, laws and Congress be damned,” said Connecticut Attorney General William Tong. “And it is yet another blow to American families and consumers who would be less protected against cheaters and scammers and unfair business practices. We’re suing to defend these bedrock consumer protections.”
