Breaking News: 21 States, DC Sue Trump Administration Over CFPB Funding

A coalition of 21 states and the District of Columbia has filed a lawsuit against the Trump administration to prevent it from defunding the Consumer Financial Protection Bureau. The lawsuit was filed on Monday, December 22, 2025.

The CFPB is facing a severe funding crisis, with its funds set to run out in a few weeks. The agency, led by Acting Director Russell Vought, is refusing to accept money from the Federal Reserve, citing a law that requires it to receive funding from the Fed's "combined earnings." However, the Trump administration argues that the Fed does not have those earnings due to operating at a loss.

The lawsuit, led by the attorneys general of the 21 states and the District of Columbia, rejects the Trump administration's argument and seeks to force the CFPB to accept funding from the Fed. This move could have significant implications for the agency's ability to regulate the financial industry.

The CFPB's funding dispute is a contentious issue, with the agency's independence and effectiveness at stake. The lawsuit is the latest development in a long-standing battle between the Trump administration and the CFPB.

This is a developing story, and we will provide updates as more information becomes available.