On January 9, 2026, the Consumer Financial Protection Bureau (CFPB) requested $145 million in new funding from the Federal Reserve. This development follows a ruling by the US District Court for the District of Columbia that the CFPB’s refusal to request additional funding from the Federal Reserve would violate the preliminary injunction in National Treasury Employees Union, et al. v. Russell Vought. The ruling, therefore, essentially required the CFPB to seek funding to comply with the order and remain operational.
The request comes after weeks of uncertainty regarding the future of the CFPB, including contingency plans to transfer pending litigation to the US Department of Justice and expedite unfinished rulemakings. In the funding request, which noted the CFPB’s disagreement with the DC District Court’s ruling, acting Director Russell Vought stated that the $145 million request would enable the CFPB to carry out its duties through the end of March 2026.
While the immediate threat to the CFPB’s operations has been mitigated because the Federal Reserve will likely grant the request, other questions surrounding the future of the CFPB remain as the NTEU v. Vought litigation is ongoing. In February, the DC District Court will hear arguments on the merits of the preliminary injunction, including the agency’s data-retention practices, mandated reinstatement of employees, reductions in force, “work stoppages” and contract terminations. In a recent brief submitted in the litigation, the CFPB asserts that the “preliminary injunction prevent[s] the politically accountable CFPB leadership from taking lawful steps to streamline the agency or redirect its policy priorities” and “infring[es] on the Executive’s discretion.” Notably, the CFPB asserts in the brief that it has “already made clear [it does] not claim the power to shut down” the agency, a point which we expect the NTEU to refute in its briefing due February 2.