D. OR.Court order
Oregon federal judge vacates CFPB defunding decisions, declaring Vought funding cutoff unlawful
U.S. District Judge Ann Aiken granted partial summary judgment on Friday to twenty-two state attorneys general challenging the Consumer Financial Protection Bureau's refusal to request operating funds from the Federal Reserve. The court held that former Acting Director Russell Vought's decision to defund the agency violated the Dodd-Frank Act and the separation of powers. Judge Aiken vacated the defunding decisions and declared the Federal Reserve must transfer the funds the director deems necessary, declining injunctive relief for fiscal 2026.
Opinion (U.S. District Court for the District of Oregon) → · Courthouse News Service, State of California - Department of Justice - Office of the Attorney General, Law360
Key points
- The court ruled combined earnings in Dodd-Frank means Federal Reserve revenues before interest expenses are deducted.U.S. District Court for the District of OregonCourthouse News Service
- Judge Aiken held the executive branch attempted to arrogate Congress's spending authority by starving the agency of funds.U.S. District Court for the District of OregonCourthouse News Service
- Federal defendants argued the suit became moot after the Federal Reserve returned to profitability, which the court rejected.U.S. District Court for the District of OregonCourthouse News Service
- The twenty-two state coalition filed the lawsuit in December 2025 after Vought declined fiscal year 2026 transfers.Courthouse News ServiceState of California - Department of Justice - Office of the Attorney General
- The court declined injunctive relief for fiscal year 2026 because the fiscal year was ending, granting vacatur and declaratory relief instead.U.S. District Court for the District of Oregon
Sources4 articles across 4 outlets
Courthouse News Service
Law360
State of California - Department of Justice - Office of the Attorney General
U.S. District Court for the District of Oregon
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