Nearly two dozen states sue the TRUMP administration over funding for CFPB

Tuesday, December 23, 2025 -Nearly two dozen U.S. states have filed a lawsuit against the Trump administration, challenging the legality of funding for the Consumer Financial Protection Bureau (CFPB). 

State attorneys general argue that recent funding changes undermine the agency’s independence and threaten its ability to protect consumers from unfair financial practices.

The lawsuit comes amid ongoing disputes over the CFPB’s structure and authority. Officials say the changes could set a precedent for limiting federal oversight of financial institutions, potentially affecting millions of Americans. 

The states are seeking a court ruling to restore proper funding and ensure the agency can continue its regulatory and enforcement work.

Legal experts note that the case could have wide-reaching implications for the balance of power between federal agencies and the executive branch. As the litigation unfolds, both sides are preparing for a high-profile legal battle that may influence the future of consumer protection in the United States.