Answers to FAQs – CFPB Funding Case

By now, most of our readers have heard that on May 16, 2024, the U.S. Supreme Court (SCOTUS) ruled that the funding structure of the Consumer Financial Protection Bureau (CFPB) does not violate the Constitution. In a prepared statement released on May 17, 2024, Director Chopra laid out what he thinks the SCOTUS opinion means for the CFPB and its focus, but what does this really mean for your organization? Will it impact your day-to-day business? What should ARM industry participants look out for in the future?  In addition to covering Director Chopra's plans, we’ll answer those and some other Frequently Asked Questions.  

Q: So, what was the ruling? 

A: The SCOTUS opinion is 59 pages discussing the word "appropriations," what it means historically, and what it means now. The opinion takes the reader on a historical journey from collecting money in the Middle Ages all the way through colonial times and finally to the present day. Ultimately, in an opinion written by Justice Thomas, the Court concluded that “appropriations need only identify a source of public funds and authorize the expenditure of those funds for designated purposes to satisfy the Appropriations Clause.”