Supreme Court to Hear Case Challenging Funding and Independence of Consumer Watchdog Agency

The Supreme Court will hear a case on Tuesday challenging the funding mechanism for the Consumer Financial Protection Bureau (CFPB). The case questions whether the CFPB's independence from Congress violates the Constitution.

The CFPB was created in 2010 in response to the 2008 financial crisis. It is funded by the Federal Reserve rather than through Congressional appropriations.

Critics argue this funding structure shields the CFPB from accountability. Defenders say it allows the agency to operate free from political influence.

In 2017, the CFPB issued a payday lending rule that was challenged in court, leading to this Supreme Court case. The court's ruling could jeopardize the CFPB's actions and existence.

The Supreme Court previously ruled in 2020 that the CFPB director must be removable by the president but allowed the agency to continue operating. A new decision is expected by June 2024.