TBA Law Blog


Posted by: Stacey Shrader Joslin on May 16, 2024

The U.S. Supreme Court has upheld the Consumer Financial Protection Bureau's (CFPB) funding mechanism, siding with the Biden administration against the payday loan industry. The 7-2 decision, authored by Justice Clarence Thomas, reversed a lower court's ruling that the CFPB's funding design violated a provision of the U.S. Constitution called the "appropriations clause," which gives Congress the power of the purse. The agency draws money annually from the Federal Reserve instead of from budgets passed by lawmakers, SCOTUSblog reports