Federal judge rules the Trump Administration can’t starve the agency of funds allocated by Congress
Attorney General Dan Rayfield is celebrating a ruling by a federal judge in Oregon keeping the federal Consumer Financial Protection Bureau (CFPB) funded. The judge ruled that the Trump Administration broke the law when it tried to shut down the CFPB by refusing to ask for the money it needs to operate. AG Rayfield led the multi-state lawsuit over the attempt to gut the CFPB.
“Protecting the wallets of working families, seniors, and small businesses should be a bipartisan priority,” said Attorney General Dan Rayfield. “The Consumer Financial Protection Bureau does critical work to protect consumers from financial tricks and traps, putting billions back in the pockets of people who’ve been harmed. This ruling is a win for every Oregonian who’s ever been hit with a hidden fee or a loan that wasn’t what they were promised.”
The CFPB is the federal agency that looks out for people in their dealings with banks, lenders, credit card companies, and debt collectors. For 14 years, it has worked alongside state attorneys general and state banking regulators, going after bad actors, setting rules of the road, giving consumers a place to turn when something goes wrong—and returning more than $21 billion to consumers.
The U.S. District Court for the District of Oregon ordered CFPB’s Acting Director to request funding from the Federal Reserve, as directed by Congress. The court found that former Acting Director Russell Vought’s refusal to request that money was unlawful and violated the Constitution’s separation of powers.
Background
Shortly after taking office, the Trump Administration set out to dismantle the CFPB. It halted work across the agency, fired probationary employees, and tried to lay off about 90% of its staff before the courts stepped in.
In November 2025, the CFPB announced it would stop requesting money from the Federal Reserve altogether. The next month, Attorney General Rayfield led 21 other attorneys general in suing. AG Rayfield and the coalition argued that the attempt to defund CFPB would have devastating impacts on consumers and severely disrupt states’ consumer protection abilities, which rely on consumer complaints and data from the agency. They asked the court to declare the move unlawful and make sure the agency stays funded.
In 2024, CFPB received 3 million consumer complaints – 8,800 of those were from Oregonians – which was a 51% increase from the year before. In 2024, companies provided more than $700,000 in direct relief to Oregon consumers after those consumers made complaints through the CFPB portal. As Attorney General Rayfield and the coalition argued, completely defunding CFPB would eliminate this important resource for resolving complaints and securing justice for cheated consumers.
The other attorneys general joining Oregon in the lawsuit included those in Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, North Carolina, Rhode Island, Vermont, Wisconsin, and the District of Columbia.