Democratic states sue to block Trump’s defunding of US consumer watchdog

The GuardianMonday, December 22, 2025 at 10:41:11 PM
NegativeU.S News
Democratic states sue to block Trump’s defunding of US consumer watchdog
  • A coalition of Democratic attorneys general from 21 states and the District of Columbia has filed a lawsuit in federal court in Oregon to block the Trump administration's decision to defund the Consumer Financial Protection Bureau (CFPB) by not requesting additional funding from the Federal Reserve. They argue that this action undermines Congress's authority and is unlawful.
  • The lawsuit is significant as it seeks to protect the CFPB, an agency established to safeguard consumer rights in financial markets, from potential operational paralysis due to lack of funding.
  • This legal action reflects ongoing tensions between state and federal authorities, particularly regarding the regulation of consumer protections and financial oversight, amidst broader debates about the Trump administration's policies and their implications for various sectors, including education and civil rights.
— via World Pulse Now AI Editorial System

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