U.S. District Court Rejects OLC Interpretation of CFPB Funding, Upholding Bureau's Financial Autonomy
On September 25, 2026, Judge Ann Aiken of the U.S. District Court for the District of Oregon ruled against the Office of Legal Counsel's (OLC) interpretation of the funding mechanism for the Consumer Financial Protection Bureau (CFPB). This decision marks the third time a federal district judge has rejected the OLC's view. The CFPB's funding, unlike most government agencies, does not come from annual congressional appropriations but rather from the Federal Reserve System's 'combined earnings.' The OLC had previously interpreted 'combined earnings' to mean the Federal Reserve's profits after deducting expenses, including interest expenses. This interpretation led to the conclusion that when the Federal Reserve operated at a loss, no funds were available for the CFPB. Acting Director Russell Vought adopted this interpretation, declining to request additional funding. Judge Aiken, however, held that 'combined earnings' refers to the Federal Reserve's gross revenues before any expenses are deducted. She also a...
