Last fall, the United States Court of Appeals for the Fifth Circuit found that the CFPB's independent funding through the Federal Reserve was in violation of the Appropriations Clause and the underlying separation of powers principles. Community Financial Services Ass'n of America, Ltd. v. CFPB, 51 F.4th 616 (5th Circ. 2022). The Supreme Court has since granted the CFPB's petition for certiorari and will hear the case next term.
Continuing the saga, and in a radical departure from the decision reached by the Fifth Circuit, the Second Circuit ruled on March 23, 2023 that the current funding structure of the Consumer Financial Protection Bureau (CFPB) is constitutional. CFPB v. Law Offs. of Crystal Moroney, P.C., 63 F.4th 174, (2d...
