The Supreme Court said Monday it will take up a Republican-led challenge to the Consumer Financial Protection Bureau, a case that could threaten how the consumer watchdog agency functions. It is the second time in three years that the justices will be examining the federal agency, which was created in the wake of the 2008 financial crisis.
The case will not be heard before October. That's when the court begins its next term.
Late last year, a federal appeals court — the U.S. Court of Appeals for the 5th Circuit — ruled that the agency’s funding structure is unconstitutional, threatening its ability to function. The Biden administration asked the high court to review that decision, which it has now agreed to do.
The administration said the lower court’s ruling “calls into question virtually every action the CFPB has taken” since its creation. The decision “threatens to inflict immense legal and practical harms on the CFPB, consumers, and the nation’s financial sector,” the administration said.
Since the bureau was created more than a decade ago by the Dodd-Frank Act, it has varied in its aggressiveness. During the Obama administration, it used its muscle to collect fines from banks and credit card companies; during the Trump administration, it drastically scaled back enforcement actions. Republicans have argued that the agency has unchecked power.
The case the justices agreed to hear centers on the agency's funding. Unlike a majority of agencies, the CFPB does not get its funding from the annual budget process in Congress. Instead, it is funded directly by the Federal Reserve. The agency’s budget is capped at 12% of the total operating expenses of the Federal Reserve System. In the 2022 fiscal year, the agency received about $640 million.
The case the justices will hear began when two associations sued over the agency's Payday Lending Rule. They argued in part that the agency's funding structure violated the Constitution, improperly insulating the agency from congressional supervision. A trial court ruled against the associations, but the appeals court agreed the funding structure was unconstitutional. Other courts that had previously looked at the agency's funding structure found no issue.
In urging the justices to take the case, a group of 16 mostly Republican-led states called the CFPB “a failed experiment in administrative governance.”
Just three years ago, in 2020, the high court dealt with a different challenge to the agency. That case involved the agency's structure. The justices ultimately ruled that Congress had improperly insulated the head of the bureau from removal. The justices said the agency could continue to operate but that its director had to be removable by the president at will.
The CFPB was the brainchild of Sen. Elizabeth Warren of Massachusetts and former Democratic presidential candidate.
Survivors of the Parkland School Shooting along with activists from March For Our Lives set up on the National Mall on Thursday. Their demonstration displayed 1,100 bodybags that spelled out the phrase “Thoughts and Prayers” to remind lawmakers that condolences are not enough and to push for action on guns. Each bag represented 150 lives lost due to gun violence. Trevon Bosley, a board member of March For Our Lives, joined Cheddar News to discuss the organization's return to Washington, DC. "The main thing bringing us back is that we have not seen anything being done on the national level for gun violence.” Bosley said. “We’re not seeing anything changed, and we’re not seeing lives being saved”
UK's prince William and his wife were met by protesters during their visit to Jamaica. Cheddar News speaks with political strategist Dee Dawkins-Haigler, who explains why the country's path to independence is relevant to Americans.
As President Biden travels to Europe this week amid Russia's ongoing invasion of its neighbor Ukraine, former Obama campaign foreign policy advisor and former Bush administration State Department official David Tafuri, joined Cheddar News to discuss the president's stop in Brussels, Belgium, to coordinate with NATO leaders efforts to dissuade Russian President Putin's war. "The maintenance of sanctions and increasingly ratcheting up the sanctions is what he thinks will cause a country like Russia to back off," Tafuri said of Biden. "And so he's committed to that strategy."
John Logan, Director of Labor and Employment Studies at San Francisco State University, joined Cheddar News to discuss the growing unionization push by employees at Starbucks and Amazon, and the wider implications of employee organization at these big companies.
Cheddar's Arielle Hixson sat down with five Black women making history as part of the Biden administration's communications team. Karine Jean-Pierre, the principal deputy press secretary; Khanya Brann, the chief of staff to Kate Bedingfield; Amanda Finney, the chief of staff to Jen Psaki; Erica Loewe, the director of African American media; and Rykia Dorsey, the senior regional communications director, shared their stories.
President Biden has embarked on a crucial trip to meet with allies in Belgium and Poland to discuss new sanctions on Russia as it continues to wage war on Ukraine. The president will seek to address the growing humanitarian crisis out of Ukraine, demonstrate a united Western front against Russia, and reassure Ukraine that it has support from the U.S. Joel Rubin, Former Deputy Assistant Secretary of State & President of the Washington Strategy Group, breaks down what to expect from the President's crucial visit to Europe.
Catching you up on what you need to know Mar 24, 2022, with NATO meeting updates, Ukraine retaking suburbs around Kyiv, the spread of omicron subvariant BA.2 in China, Google Pay launching a third-party billing option, and a 16-year-old is suspected of being the Lapsus$ mastermind behind hacks of Microsoft and others.
The number of Americans applying for unemployment benefits last week fell to its lowest level in 52 years as the U.S. job market continues to show strength in the midst of rising costs and an ongoing virus pandemic.
Alicia Garza joined Cheddar News to talk about the Black Futures Lab where serves as founder and principal. The non-profit organization seeks to develop grassroots power in the Black community with projects like the Black Census, which takes into account the granular experiences of the demographic. "What we know about Black folks and the reason that we decided to focus on black communities again, it's because we're being left out and left behind their stories being told about us without our input and without our shaping," she said. "If we want a robust democracy in this country, we have to change that equation." Garza also touched on issues around voter suppression and the midterm elections.
