Democracy Forward Moves to Dismiss Case Challenging Cuts to CFPB Funding Following Government Affirmations 

Washington, D.C. – Democracy Forward today celebrated the resolution that the Consumer Financial Protection Bureau (CFPB) cannot and will not transfer money from its reserve fund as a means of defunding and dismantling the independent consumer defense agency. As a result of the government’s statements to that effect, the emergency lawsuit filed on behalf of the City of Baltimore and Economic Action Maryland Fund to stop CFPB’s Acting Director Russ Vought from unilaterally defunding the Consumer Financial Protection Bureau, is being voluntarily dismissed by the plaintiffs. 

“This is a big win for consumers,” said Skye Perryman, President and CEO at Democracy Forward. “Our case derailed Russ Vought’s plan to defund the CFPB – an agency that has been a critical defender of American consumers. We are honored to work with the City of Baltimore and Economic Action Maryland Fund to stop the Trump-Vance administration from unlawfully defunding a federal agency that protects millions of Americans from financial harm. Democracy Forward will continue to remain vigilant to hold the administration accountable to their repeated representations in court.” 

The case, Mayor and City Council of Baltimore, et al. v. CFPB et al., was filed along with an emergency motion on February 12 on behalf of the City of Baltimore and Economic Action Maryland Fund, asking the court to stop Vought from defunding the CFPB by transferring the agency’s reserve fund away from the CFPB. Throughout the case’s proceedings, CFPB representatives repeatedly represented that they do not have the legal authority to transfer away the reserve fund. With those representations well documented, plaintiffs today moved to dismiss the case, reserving the right to take action in the future if any of the reserve funds are, in fact, transferred. 

“The CFPB is clearly a target for this administration because it protects working families from unfair, deceptive, and predatory practices. While the administration continues its efforts to dismantle the CFPB and weaken regulations that protect people from fraud and debt traps, we are delighted that the government concedes it cannot defund the bureau by transferring money from its reserve fund. This is a win for ordinary folks and we were proud to work with Democracy Forward and the City of Baltimore to stop this effort,” said Marceline White, Executive Director of Economic Action Maryland Fund. 

The City of Baltimore and EAMF are represented by Democracy Forward Senior Counsels Mark Samburg, Kevin Friedl, and Jessica Morton. 

Read the complaint here and filing dismissing the case here.

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Democracy Forward is a national legal organization that advances democracy and social progress through litigation, policy, public education, and regulatory engagement. For more information, please visit www.democracyforward.org.