Trump’s Latest Attack on Consumer Protections Gets Blocked — For Now

Why this matters for Americans

Blue Press Journal (DC) Dec 30, 2025 – In yet another attempt to undermine protections for ordinary Americans, the Trump administration tried to starve the Consumer Financial Protection Bureau (CFPB) of its funding — a move that could have effectively shut down the agency and laid off its entire staff. This time, the scheme came through Trump’s budget director, Russell Vought, who sought to kneecap the watchdog by cutting off its budget. 

But on Tuesday, federal district court Judge Amy Berman Jackson slammed the brakes on that plan. She ruled that the White House cannot allow the CFPB’s funding to lapse, and that the agency can continue to receive money from the Federal Reserve — even though the Fed itself is operating at a loss. The administration’s new legal theory for blocking the CFPB’s funding, Jackson made clear, simply doesn’t hold water. 

Why This Matters
The CFPB was created in the wake of the 2008 financial crisis to protect consumers from predatory banks, payday lenders, and other financial scams. Gutting it is a dream for Wall Street lobbyists — and a nightmare for working families. Trump’s effort to quietly pull the plug on the agency is part of a long-running Republican campaign to weaken or dismantle it entirely, handing more power back to the very industries it was designed to police. 

How the CFPB Is Funded
Unlike most federal agencies, the CFPB does not rely on the annual Congressional appropriations process. Instead, it draws its budget directly from the Federal Reserve, up to a capped amount set by law. This structure was intentional: it insulates the CFPB from political interference and allows it to pursue investigations and enforcement actions without worrying about Congress or the White House using the budget as leverage. 

The Bottom Line
Trump’s team knew they probably couldn’t kill the CFPB outright without a fight, so they tried to choke off its funding instead. Judge Jackson’s ruling is a win for consumers — but it’s also a reminder of how far this administration was willing to go to dismantle protections for the public in service of corporate interests.