CFPB Changes Course on Federal Funding

January 13, 2026 - 02:21

On January 9, the Acting Director of the Consumer Financial Protection Bureau (CFPB), Vought, informed Judge Amy Berman Jackson about a significant shift regarding the agency's funding from the Federal Reserve. This decision comes in the wake of Judge Jackson's opinion issued on December 30, 2025, which raised questions about the CFPB's financial structure and its implications for the agency's independence.

The CFPB has historically relied on the Federal Reserve for its funding, a model designed to insulate it from political pressures. However, the recent legal scrutiny has prompted the CFPB to reconsider this arrangement. Vought's notification indicates that the agency is taking steps to align its funding practices with judicial expectations while maintaining its operational integrity.

This development is crucial as it may impact the CFPB's ability to enforce consumer protection laws effectively. Stakeholders are closely monitoring the situation, anticipating further clarification on how these changes will affect the agency's future operations and its mission to safeguard consumers in the financial marketplace.