Supreme Court Ruling on CFPB Funding Structure Disappoints Small Businesses

Date: May 16, 2024

CFPB v. CFSA concerned whether the CFPB violates the Appropriations Clause

WASHINGTON, D.C. (May 16, 2024) – Small businesses are disappointed by today’s U.S. Supreme Court decision in Consumer Financial Protection Bureau v. Community Financial Services Association of America, Limited. The Court ruled that the funding mechanism for the Consumer Financial Protection Bureau (CFPB) complies with the Constitution’s Appropriations Clause.

“Small businesses will feel the negative impact of this decision,” said Beth Milito, Executive Director of NFIB’s Small Business Legal Center. “We are disappointed with the Court’s ruling, which will ultimately leave small businesses with expensive penalties and burdensome inspections at the hands of the CFPB.”

The case questioned whether the CFPB’s funding structure violates the Appropriations Clause in Article 1, Section 9 of the Constitution.

NFIB joined a Chamber of Commerce-led coalition in filing an amicus brief. Our brief argued three main points: 1) the Bureau’s funding mechanism violates the Constitution, 2) a decision affirming the judgment would provide targeted and meaningful relief for those subject to the CFPB, and 3) the Court could mitigate disruptions in the marketplace by crafting a narrow remedy.

The NFIB Small Business Legal Center protects the rights of small business owners in the nation’s courts. NFIB is currently active in more than 40 cases in federal and state courts across the country and in the U.S. Supreme Court.

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