Supreme Court Rejects Challenge to Consumer Watchdog’s Funding
New York TimesMay 27
SCOTUS Upholds Consumer Watchdog's Funding Mechanism
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The Facts
The US Supreme Court (SCOTUS) ruled 7-2 on Thursday that the Consumer Financial Protection Bureau's funding structure doesn't violate the Appropriations Clause of the Constitution.
Most federal agencies receive funding from Congress, while the CFPB can fund itself by withdrawing up to 12% of the Federal Reserve's operating expenses.
The Spin
Narrative A
SCOTUS has upheld the CFPB's congressionally-appointed authority to protect Americans from predatory financial companies. This ruling, based on historical precedent, allows the consumer watchdog to continue its legacy of handling millions of complaints and providing billions of dollars in relief to the American people.
Narrative B
Unfortunately, this ruling is in line with the Constitution, but that means it's up to Congress to make a change. Just because the CFPB is allowed to fund itself via the Federal Reserve doesn't mean it should. By handing virtually all of its Constitutional budgetary powers to the executive branch, Congress has allowed these agencies to become bloated and unregulated.
Metaculus Prediction
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