CFPB Funding Mechanism Determined Valid

The Supreme Court released their decision in the Consumer Financial Protection Bureau v. Community Financial Services Assn. of America, Ltd. case, which was brought to challenge the funding of the CFPB as inconsistent with the Appropriations Clause.

The challengers argued that this funding mechanism violated the appropriations clause, which provides that “no money shall be drawn from the Treasury, but in Consequence of Appropriations made by Law.” But the majority rejected this argument, explaining that “an appropriation is simply a law that authorizes expenditures from a specified source of public money for designated purposes.” “The statute that provides the Bureau’s funding meets these requirements,” the majority writes.

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