Elizabeth Warren Blasts Trump For Trying To 'Kill' CFPB As Court Undermines Funding: 'Absurd And Plainly Illegal'

Sen. Elizabeth Warren (D-Mass.) slammed the Trump administration after a court ruling declared the funding mechanism of the Consumer Financial Protection Bureau (CFPB) illegal.

Elizabeth Warren Condemns Court Ruling

Warren took to X to oppose the decision and called it “absurd and plainly illegal.” She also called for the court to reject the “fringe theory.”

She added that President Donald Trump would do anything to destroy an agency that has returned over $21 billion to “scammed” Americans, but wouldn’t lower costs for the citizens.

CFPB Faces Funding Cutoff Amid Fed Losses

The administration stated in a court filing that the CFPB is legally prohibited from requesting additional funding from the Federal Reserve — its main source of financing- because the Fed has run losses since 2022 and only surplus funds are available to the agency.

The CFPB, in the filing, mentioned that it has enough funds to last “at least” till the end of the year, but expects to exhaust its currently available funds by early 2026.

This decision could leave the CFPB without funds to operate from next year, even for its mandated activities, unless Congress approves new funding for the agency. The Justice Department now interprets “combined earnings” to mean profits. “If the Federal Reserve has no profits, it cannot transfer money to the CFPB,” the DOJ wrote.

Trump’s Push To Dismantle CFPB

Even in October, Warren had accused the White House of trying to dismantle the CFPB, citing comments from budget director Russell Vought that the agency could be shut down within months. She warned that the Office of Management and Budget (OMB) is "trying to kill the agency holding them accountable," as the government shutdown stretches into its third week.

In August, a federal appeals court allowed the Trump administration to move forward with plans to dismantle the CFPB, paving the way for mass layoffs across the agency. The court ruled that employee unions must seek remedies through federal labor channels instead.

In February, Trump had announced his intention to shut down the agency, citing distress calls from bankers and loan officers over its regulations.

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