Suit Asks Court to Stop Russ Vought From Executing His Plan to Defund Critical Agency 

Baltimore, MD — Today, Democracy Forward filed an emergency suit on behalf of the City of Baltimore and Economic Action Maryland Fund asking the court to stop Russ Vought from unilaterally defunding the Consumer Financial Protection Bureau. 

The complaint states: “Defendants have already announced their intention not to draw additional funds for the CFPB, claiming that the agency’s existing operating reserves are sufficient. Now Defendants are poised to transfer away those operating reserves, leaving the CFPB defunded and dead in the water. That action is unlawful under the Administrative Procedure Act. It is arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law because it is designed to and in fact will leave the CFPB with insufficient funding to carry out its statutorily required functions. And it is in excess of statutory jurisdiction, authority, or limitations, or short of statutory right because the CFPB Director is statutorily required to request transfer of an amount ‘reasonably necessary to carry out the authorities of the Bureau under Federal consumer financial law,’ 12 U.S.C. 5497(a), and has no authority or discretion to unilaterally defund the agency.”

“Russ Vought has revealed his plan to defund the Consumer Financial Protection Bureau, a critical defender of American consumers that Congress and the courts have protected,” said Skye Perryman, President and CEO of Democracy Forward. “The Trump administration must be stopped from unlawfully defunding a federal agency that protects millions of Americans from financial harm.” 

Read the complaint 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.