CLARKSBURG, W.Va. (WBOY) — The majority of states in the union are calling on the Supreme Court to take up a case that would decide on the constitutionality of the Consumer Financial Protection Board’s (CFPB) funding structure.
The CFPB was formed during the Obama administration, after the 2008 financial crisis, and regulates much of the financial services industry and gets its funding from the Federal Reserve.
The case in question is Consumer Financial Protection Bureau v. Community Financial Services Association of America Ltd.
West Virginia is leading a coalition of 16 red states that want the justices to affirm a Fifth Circuit Court decision ruling the CFPB’s funding structure unconstitutionally encroaches on Congress’ power over appropriations. That decision would require the CFPB to get an annual budget approved by Congress.
A dueling blue state brief signed by Washington, D.C., New York and 20 others is calling on the Supreme Court to follow the Biden Administration’s request for it to take up the case and reverse the lower court ruling.
West Virginia Attorney General Patrick Morrisey said in a press release Thursday that he isn’t just petitioning the Supreme Court.
“We also recently sent a letter to CFPB asking the agency to heed the ruling from the U.S. Court of Appeals for the Fifth Circuit and cease using unconstitutionally appropriated funds,” Attorney General Morrisey said. “We are now asking the Supreme Court to grant this petition to confirm everywhere—not just in the Fifth Circuit—that the CFPB cannot act as a rogue agency.”
Click here to read Morrisey’s full brief.
According to the SCOTUS Blog, the justices currently have until Jan. 13 to file a response.