Supreme Court conservative justices express doubts about the CFPB case

The Supreme Court is currently hearing a case that challenges the constitutionality of the funding structure of the Consumer Financial Protection Bureau (CFPB). The bureau received $641.5 million in funding this year. A ruling in the case is expected before July.

In the case, Elizabeth Prelogar, arguing on behalf of the Biden administration, cites examples of similar funding structures applied to past and present agencies. Clarence Thomas, a Supreme Court justice, stated that the CFPB's funding structure is not a constitutional problem even if it's unusual.

During the hearing, Samuel Alito compared the CFPB's funding to the Federal Trade Commission's budget. The Supreme Court's conservative justices have expressed skepticism, with Brett Kavanaugh stating that the CFPB is no longer independent since it is under the direct supervision and control of the president.

Francisco, arguing against Alito's hypothetical, states that the CFPB's hypothetical funding would be a standing uncapped appropriation. The CFPB's funding is capped at $785.4 million each year, a cap it has never reached.

John Roberts called Prelogar's view of congressional appropriations power "aggressive". Elena Kagan questioned whether, on Francisco's view, the Federal Reserve would also be unconstitutional. Neil Gorsuch asked a hypothetical question about a trillion dollars for the CFPB's funding. Ketanji Brown Jackson questioned where in the text of the appropriations clause it says the government must fix the amount of funding.

The 2nd U.S. Circuit Court of Appeals found the CFPB's funding structure constitutional, while the 5th U.S. Circuit Court of Appeals ruled that it is unconstitutional because it receives funds from the Federal Reserve and not Congress. The stance of Amy Coney Barrett on the issue was not mentioned in the provided paragraphs.

The case in question is likely the "Seila Law LLC v. Consumer Financial Protection Bureau (CFPB)". In this case, the independence and funding of the CFPB were challenged. The Supreme Court decided in 2020 that the structure of the CFPB was unconstitutional because the director of the CFPB cannot be fired without the approval of Congress. However, the justices were divided over whether the funding structure of the CFPB poses a constitutional problem.