The Supreme Court on Thursday ruled the funding mechanism of the Consumer Financial Protection Bureau does comply with the appropriations clause, reversing an appeals court decision that found it unconstitutional.
complies with the appropriations clause, reversing an appeals court decision that found it unconstitutional.by Justice Clarence Thomas rejected a broad case that sought to challenge the agency’s funding mechanism, reversing a lower-court ruling that would have undermined the watchdog agency created by Congress 12 years ago. Republican-appointed Justices Samuel Alito and Neil Gorsuch dissented.
The CFPB, formed amid the 2008 financial crisis to protect consumers from predatory banks and lenders, is funded by drawing money from the Federal Reserve, after the CFPB director makes a request for the money he or she deems “reasonably necessary to carry out” the bureau’s duties. Consumer Financial Protection Bureau v. Community Financial Services Association of America,
was brought by key players in the payday lending industry who say the CFPB is unconstitutionally funded by the Alito’s dissent, joined by Gorsuch, complains that “today’s decision turns the Appropriations Clause into a minor vestige.” The case involved a decision by the conservative U.S. Court of Appeals for the 5th Circuit that said the funding mechanism Congress adopted to ensure the CFPB’s independence was unconstitutional. A panel of three judges, nominees of former President Donald Trump, ruled in 2022 that the mechanism violated the Constitution’s command requiring congressional appropriation of money. Their decision said the agency’s insulation from congressional committees compiled on that violation.
But a Supreme Court majority led by Thomas, a Republican-appointed justice, rejected this argument, saying that “an appropriation is simply a law that authorizes expenditures from a specified source of public money for designated purposes.”
Österreich Neuesten Nachrichten, Österreich Schlagzeilen
Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.
Supreme Court upholds funding structure for CFPBThe opinion was written by Justice Clarence Thomas who reversed the decision of the Fifth Circuit. Justices Neil Gorsuch and Samuel Alito dissented.
Weiterlesen »
Supreme Court sides with the Consumer Financial Protection Bureau, spurning a conservative attackThe Supreme Court has rejected a conservative-led attack that could’ve undermined the Consumer Financial Protection Bureau. The justices ruled Thursday the way the bureau is funded does not v…
Weiterlesen »
Supreme Court rejects broad conservative challenge to consumer watchdog agencyThe Consumer Financial Protection Bureau case is one of several the Supreme Court heard this term that challenge the power of federal agencies, long a target of Republicans.
Weiterlesen »
Supreme Court sides with the Consumer Financial Protection Bureau, spurning a conservative attackThe justices ruled 7-2 that the way the agency is funded does not violate the Constitution, reversing a lower court. The CFPB was created after the 2008 financial crisis to regulate mortgages, car …
Weiterlesen »
Supreme Court rules Consumer Financial Protection Bureau funding structure is legalThe Supreme Court ruled that the funding structure of the Consumer Financial Protection Bureau is legal.
Weiterlesen »
Supreme Court sides with Consumer Financial Protection BureauThe Supreme Court on Thursday rejected a conservative-led effort that could have undermined the Consumer Financial Protection Bureau.
Weiterlesen »