Federal judge mandates funding for consumer protection agency

In a 40-page opinion, U.S. District Judge Ann Aiken concluded that Acting Director Russell T. Vought unlawfully withheld funding for the Consumer Financial Protection Bureau by claiming the Federal Reserve’s interest expenses exceeded its income. The judge rejected the argument that a return to profitability made the case moot, emphasizing that the states challenged a specific agency action, not a tentative plan. She interpreted the Dodd-Frank statute to require the bureau to receive a share of the Fed’s earnings before expenses are deducted.

Aiken also held that Vought’s actions usurped congressional authority, breaching the separation of powers. The decision vacates both of Vought’s funding determinations and orders that the bureau’s funding be restored. No comments were received from the states or federal defendants before press time.