By John Kruzel
WASHINGTON (Reuters) – The U.S. Supreme Court on Monday agreed to decide whether the Consumer Financial Protection Bureau’s funding structure established by Congress violates the U.S. Constitution in a case that President Joe Biden’s administration has said threatens the agency’s ability to function and risks market disruption.
The justices took up the CFPB’s appeal of a lower court’s ruling in a lawsuit brought by trade groups representing the payday loan industry that the consumer watchdog agency’s funding mechanism violated a constitutional provision giving lawmakers the power of the purse. The agency draws money each year from Federal Reserve earnings rather than budgets passed by Congress.
(Reporting by Andrew Chung; Editing by Will Dunham)
