• The U.S. Court of Appeals for the Fifth Circuit ruled that the Consumer Financial Protection Bureau has an unconstitutional funding mechanism.
• The CFPB was the brainchild of Sen. Elizabeth Warren and passed as part of the 2010 Dodd-Frank law. It is funded through the Federal Reserve, thereby bypassing congressional appropriations. That didn’t fly with the appeals court.
• “Congress’s decision to abdicate its appropriations power under the Constitution, i.e., to cede its power of the purse to the Bureau, violates the Constitution’s structural separation of powers,” a three-judge panel of the 5th U.S. Circuit Court of Appeals ruled in a case brought by a payday lending group against the CFPB’s 2017 payday lending rule.

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