Court orders White House to keep CFPB funded — for now
Plus, the president plans to announce his Fed chair nominee in January; HUD Secretary Scott Turner said “more research” on 50-year mortgages is needed.
Key points:
- The CFPB must remain funded, at least until a February hearing, a federal judge ruled. The DOJ’s Office of Legal Counsel had attempted to block funding.
- President Donald Trump said he has a top pick in mind to serve as the Federal Reserve’s next chair. He plans to make his announcement in January.
- Meanwhile, a controversial 50-year mortgage proposal is still under consideration — “more research needs to be done,” said HUD Secretary Scott Turner.
This week, a federal judge said funding for the Consumer Financial Protection Bureau (CFPB) must continue as the legal battle over the bureau's existence plays out.
Elsewhere in Washington, D.C., President Donald Trump said he will announce his Federal Reserve chair nominee in January, and Department of Housing and Urban Development (HUD) Secretary Scott Turner signaled that discussions about a controversial 50-year mortgage proposal aren't over.
Trump admin trying to 'starve the CFPB of funding'
The Trump administration's claims that the CFPB is out of funding options is "an unsupported and transparent attempt to starve the CFPB of funding," according to a Dec. 30 court order.
The order from U.S. District Judge Amy Berman Jackson requires funding of the CFPB to continue until a February hearing in the case.
Legal battles surrounding the CFPB's future began in early 2025 as administration officials worked to shut the bureau down. Last month, the Department of Justice's Office of Legal Counsel (OLC) informed the court that the Federal Reserve cannot continue funding the CFPB — as it has since the bureau's founding in 2011 — because the central bank is operating at a loss.
But the Fed has operated at a loss since 2022, Jackson pointed out, and it is legally required to provide those funds under the Dodd-Frank Act.
The OLC's assessment "constitutes a sharp departure from the Bureau's longstanding interpretation of its statutory funding procedure," Jackson said, adding that "neither the statute, the injunction, nor the Fed's willingness to pay has changed."
"The only new circumstance is the administration's determination to eliminate an agency created by Congress with the stroke of a pen, even while the matter is before the Court of Appeals," Jackson wrote.
Earlier this month, over 20 states sued to block the CFPB's defunding.
Fed chair announcement coming soon
Days after declaring that anyone who disagrees with him "will never be the Fed Chairman," Trump said he intends to announce his pick for the job "some time" in January.
Jerome Powell's term as the current Fed chair ends in May, and there has been much speculation about his replacement. While a handful of candidates are still reportedly in the running, Trump said at a Dec. 29 press conference that he has a favorite.
The president renewed his ongoing criticisms of Powell during Monday's press conference, calling the head of the central bank "an absolute fool" and threatening to sue him for gross incompetence over plans to renovate the Fed's headquarters.
Trump also said he hasn't ruled out firing Powell, telling reporters, "I still might."
'More research' needed on 50-year mortgages
The HUD secretary didn't dismiss the possibility of a 50-year mortgage option while discussing plans to address housing affordability challenges.
During a Dec. 28 appearance on Fox & Friends Weekend, Turner said he and other administration officials will meet in the new year to explore some of the "aggressive housing reform" ideas promised by Trump. When asked about 50-year mortgages, a widely criticized idea floated by the president in November, Turner indicated it is "yet to be seen" whether the option would be viable.
"I think more research needs to be done on the 50-year mortgage and the other ideas that have been put forth," he said.