The Supreme Court upheld the funding structure for the Consumer Financial Protection Bureau on Thursday, turning aside an argument that would have restricted Congress’ power to set up independent agencies.
The 7-2 decision found that Congress did not violate the Constitution when it set up the funding scheme for the CFPB, a decision that avoided potential ripple effects across agencies such as the Federal Reserve, U.S. Postal Service and others that are funded outside of the normal appropriations process.
Justice Clarence Thomas, writing for the majority, noted the “novel” funding structure Congress used, which allows the CFPB to draw funds from a portion of the funds collected by the Federal Reserve outside the normal appropriations process.
