The full story
In a victory for consumers, Attorney General Jennifer Davenport announced that a multistate coalition co-led by New Jersey won a court order rejecting the Trump Administration’s efforts to defund the Consumer Financial Protection Bureau (CFPB). The post AG Davenport Announces Win to Fund the CFPB, Helping Protect Consumers appeared first on New Jersey Office of Attorney General.
What happened
– Jennifer Davenport, Attorney General
In December 2025, 22 attorneys general sued to stop the Trump Administration from attempting to gut the agency, in violation of federal law.
Key details
The Trump Administration was unlawfully refusing to request any funding from the Federal Reserve for this agency based on Acting Director Russell T.
Vought’s unprecedented interpretation of the agency’s funding law.
Today’s decision, by Judge Ann Aiken of the U.S.
District Court in the District of Oregon, rejects Vought’s interpretation and strikes down the agency’s decision not to request funding.
Vought then made the decision not to request any funding from the Federal Reserve.
The multistate lawsuit argues that the decision not to seek any funding for the CFPB is unlawful and unconstitutional.
The CFPB writes and enforces rules to regulate financial institutions, collects critical economic data, and fields millions of consumer complaints every year.
The CFPB has returned more than $21 billion that was improperly taken from over 205 million Americans throughout its 14-year existence, and New Jersey and other states routinely work with and rely on the CFPB to protect consumers.
States rely on consumer complaints from CFPB to investigate wrongdoing, secure refunds and restitution for consumers, and support their own enforcement actions against financial institutions.
For example, CFPB collects demographic and geographic lending data under the Home Mortgage Disclosure Act, which states (including New Jersey) use to protect homebuyers from discriminatory lending.
Attorney General Davenport is represented in this matter by Deputy Attorneys General Monica Finke, Jake Mazeitis, and Amanda McElfresh, under the supervision of Deputy Solicitor General Shankar Duraiswamy.
Attorney General Davenport co-led this lawsuit with attorneys general from New York, Oregon, Colorado, and California.
Joining them in filing the suit are attorneys general from Arizona, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Mexico, North Carolina, Rhode Island, Vermont, Wisconsin, and the District of Columbia.
Background and context
Established in the wake of the Great Recession, the CFPB is an independent agency focused on regulating financial institutions and products to protect consumers.
What officials said
TRENTON — In a victory for consumers, Attorney General Jennifer Davenport announced that a multistate coalition co-led by New Jersey won a court order rejecting the Trump Administration’s efforts to defund the Consumer Financial Protection Bureau (CFPB).
Instead of addressing that crisis, the Trump Administration attempted to kneecap a crucial watchdog agency that prevents corporations from lawlessly imposing hidden fees and misleading terms,” said Attorney General Davenport.
The court’s order tells Vought to do what the law requires: fund the CFPB.
In November 2025, the Trump Administration took the novel position that the agency can only be funded by the Federal Reserve’s “profits,” which Vought asserted were nonexistent.
Why it matters to residents
In addition, CFPB is the only federal agency authorized to supervise the nation’s largest banks for their compliance with consumer financial protection laws.
The states’ consumer protection efforts rely on consumer complaints and data from the CFPB, and states also regularly partner with the CFPB on large-scale, nationwide investigations.
Beyond its own consumer protection actions, CFPB is legally mandated to provide vital information to states to aid their own efforts.
What happens next
“The affordability crisis continues.
The attorneys general argued that completely defunding the CFPB will eliminate this important resource for resolving complaints and securing justice for cheated consumers.
Source and attribution: Jersey Alerts reviewed the primary official release from NJ Attorney General and any additional sources identified above. Names, dates, figures, quotations, claims and characterizations remain attributed to their cited source unless Jersey Alerts states that they were independently confirmed.
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