WASHINGTON – Senator Ruben Gallego (D-AZ) and his Democratic colleagues filed a bicameral amicus brief challenging Consumer Financial Protection Bureau (CFPB) Acting Director Russell Vought’s latest attempt to dismantle the agency. Acting Director Vought is relying on a fringe legal theory that has been widely rejected by multiple federal courts and former Fed officials to illegally deny funding to the agency that protects American families from predatory lenders, abusive debt collectors, and financial scams. The lawmakers were joined by former lawmakers Chris Dodd (D-CT) and Barney Frank (D-MA), who wrote the Dodd-Frank Wall Street Reform and Consumer Protection Act that created the CFPB and specified how the agency is funded.
The lawmakers argued that Vought’s interpretation of Dodd-Frank is at odds with Congress’s plans to provide a consistent and stable funding stream to the CFPB:
“In sum, Acting Director Vought’s newfound definition of ‘combined earnings’ is completely at odds with Congress’s plan in passing Dodd-Frank and setting up the Bureau. It undermines the Bureau’s independence as a financial regulator; it deprives the Bureau of the continuous and stable funding source Congress expressly authorized; and it supports results Congress never fathomed—and actively worked to avoid. This Court should reject it,” the lawmakers wrote.
Read the full amicus brief HERE.
In addition to the amicus brief, Senator Gallego joined his colleagues in sending a letter directly to Acting Director Vought, urging him to comply with the law and immediately ask the Federal Reserve for the maximum allowable amount to carry out the activities of the consumer watchdog agency.
“It is laughable to argue that Americans should be protected from predatory lending and abusive financial practices only in years when the Federal Reserve makes an accounting profit,” the Senators wrote. “But even under this discredited legal theory, there is no rationale for CFPB not to seek funding. According to both the Bank Policy Institute and the American Enterprise Institute, which have been highly critical of the CFPB, the Federal Reserve is on pace to turn a substantial profit this quarter of up to $2 billion. This amount far exceeds the CFPB’s statutory funding cap. In other words, the Federal Reserve has ample “profits” from which to meet the CFPB’s funding needs.”
Read the full letter HERE.
December 18, 2025