Courts and Regulation

A coalition of 21 states and the District of Columbia filed suit in federal court in Oregon on Dec. 22, 2025 to block the Trump administration and Acting CFPB Director Russell Vought from effectively defunding the Consumer Financial Protection Bureau by refusing mandated funding from the Federal Reserve, a move that could exhaust the agency’s resources by January 2026. The states argue the CFPB is unlawfully redefining the Dodd–Frank requirement that it be funded from the Fed’s “combined earnings” to mean only profits, despite the Fed’s current losses, and warn that loss of CFPB funding would cripple joint federal–state efforts to police predatory lenders, scammers and other financial abuses.