The question before the justices is whether Congress can relinquish its power of the purse to another branch of government.
The Community Financial Services Association of America Ltd. and the Consumer Service Alliance of Texas, which brought the challenge, said empowering the CFPB to set its budget undercuts the political accountability the Constitution requires.
The court said the payday rule must be vacated because it can be traced back to the CFPB’s unconstitutional funding structure. Speaking a year later, Ms. Warren said the independent funding was a critical element in making the CFPB “insulated from the political process.” “No other court has ever held that Congress violated the Appropriations Clause by passing a statute authorizing spending. Nor has a court previously approved a similarly sweeping theory of retrospective relief, which threatens profound disruption by calling into question virtually every action the CFPB has taken in the 12 years since its creation,” Solicitor General Elizabeth Prelogar wrote.
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