Acting Consumer Financial Protection Bureau (CFPB) Director Russell Vought has agreed to temporarily halt his plans to stop the funding of the agency for at least two weeks following a court challenge over whether he has the authority to take such an action.
According to Bloomberg Law, the City of Baltimore and the nonprofit Economic Action Maryland Fund sued Vought, accusing him of trying to shut down the CFPB by blocking its Federal Reserve funding, which would “effectively defund the CFPB and leave it unable to carry out its congressionally mandated mission and specific statutory responsibilities.”
“Defendants have already announced their intention not to draw additional funds for the CFPB, claiming that the agency’s existing operating reserves are sufficient,” the lawsuit stated. “Now Defendants are poised to transfer away those operating reserves, leaving the CFPB defunded and dead in the water.”
The lawsuit alleged Vought could not unilaterally close a federal agency that was created by an act of Congress. Both Vought and the plaintiffs agreed to a Feb. 28 date for pausing the funding decision, unless a “contrary order” from the court came sooner. The Democracy Forward Foundation is representing the Baltimore plaintiffs.
Earlier this week, a labor union representing CFPB filed two lawsuits against Vought’s efforts to stop work at the regulatory agency.
Defund and end the CFPB! Way too many rules.
Thank you for reporting real estate related news without the left leaning bias.
Agree Joy, just the facts!