The Consumer Financial Protection Bureau faces a challenge to its existence in a case the US Supreme Court will take up next term.
The US Court of Appeals for the Fifth Circuit ruled the agency’s funding mechanism violates separation of powers principles because it’s paid for by the Federal Reserve, not through legislative appropriations.
The Biden administration warns the ruling calls into question “every action” the CFPB has taken since its creation by Congress in the aftermath of the 2008 financial crisis, and could “inflict immense” legal and practical harm on consumers.
Adam White of the American Enterprise Institute joins Cases and Controversies to explain the case and discuss the court’s recent attempts to bolster presidential power over administrative agencies.
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