US CFPB Asks $145M From Fed To Carry Out Its Authorities In Second Quarter Of 2026

• Donald Trump last year fired CFPB Director Rohit Chopra and his administration had defanged the agency in February.
• CFPB acting director Russel Vought last year declined to request additional funding from the Federal Reserve for the final quarter of 2025. 

The U.S. Consumer Financial Protection Bureau (CFPB) has requested the Federal Reserve to fund $145 million to carry out its authorities for the second quarter of fiscal year 2026, according to a court document. 

A federal judge ruled last week that the Trump administration must continue requesting funding for the CFPB, and blocked the White House’s attempt to defund the agency. 

A federal appeals court in Washington last month tossed out an earlier decision that allowed President Trump's administration to resume mass firing of staff at the CFPB. The Trump administration was planning to fire up to 90% of the CFPB's staff, according to a report from Reuters News. 

The agency had said in court its current funding, which it has not replenished in 2025, will be exhausted after December 31. 

Meanwhile, the CFPB has been facing a mostly self-imposed funding crisis as top officials said they are legally barred from requesting funds for agency operations from the Federal Reserve so long as the central bank is not operating at a surplus, a position that Fed officials and some courts have rejected, according to the report. 

CFPB Troubles 

Donald Trump last year fired CFPB Director Rohit Chopra and his administration had defanged the agency in February.  Ever since, the agency has attempted to cut the majority of its staff. CFPB’s acting director Russel Vought last year declined to request additional funding from the Federal Reserve for the final quarter of 2025. 

The U.S. Consumer Financial Protection Bureau had warned staff that the agency may soon need to eliminate some of its workforce because of new funding limits imposed this year by Congress, according to a report from Reuters. 

CFPB regulates the offering and provision of consumer financial products and services. It also regulates banks, title lenders, mortgage originators among others. U.S. Congress in 2008 created the agency in the wake of the financial crisis in order to police financial industries. 

Market Update

Meanwhile, U.S. equities closed higher on Friday. At the time of writing, the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, was up by 0.63%, the Invesco QQQ Trust ETF (QQQ) rose 1.01%, while the SPDR Dow Jones Industrial Average ETF Trust (DIA) gained 0.50%. 

Retail sentiment around the S&P 500 ETF on Stocktwits was in the ‘bullish’ territory.
 

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