Washington, DC — Today, the U.S. Supreme Court ruled in a historic victory that the funding structure of the Consumer Financial Protection Bureau (CFPB) is constitutional, rejecting the arguments made by predatory payday lenders.

“From protecting consumers against predatory lending to equalizing access to credit, the CFPB works for the American people. Today, millions of Americans can breathe easier as a result of the U.S. Supreme Court’s ruling to uphold the constitutionality of the CFPB,” said Skye Perryman, President and CEO of Democracy Forward, which served as counsel for small businesses supporting the CFPB’s authority. “The Court rightfully rejected a fringe and baseless legal theory endorsed by the Fifth Circuit that put the economic wellbeing of the American people in jeopardy. We are pleased that the Court affirmed Congress’ power to structure the CFPB to function in times of national crisis and gridlock. In addition to vindicating the rights of consumers, this decision is also a win for those who rely on critical programs funded through similar mechanisms, like Social Security and the Farm Credit Administration.”

As Democracy Forward previously explained, the lawsuit brought against the CFPB is not just a challenge to the agency, but to democracy itself. The CFPB is one of many government agencies funded outside the appropriations process—Social Security, Medicare, the Federal Reserve, the Federal Deposit Insurance Corporation, U.S. Citizenship and Immigration Services, the U.S. Postal Service, and the Farm Credit Administration are all funded outside of appropriations too. If the Supreme Court had declared the CFPB’s funding structure unconstitutional, up to two-thirds of other federal government spending could have been ruled unconstitutional.

Earlier this year, Perryman testified before Congress on this case. For more information about Democracy Forward and its role in CFPB v. CFSA , please visit www.democracyforward.org. 

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