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ARTICLE · 27 NOVEMBER 2025

Anticipating Shutdown, CFPB Is Transferring Cases To DoJ

Ballard Spahr LLP
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The CFPB is transferring all of its pending litigation to the Justice Department as a result of the funding crisis the Trump Administration has said the bureau faces...

United StatesFinance and Banking
Daniel McKenna
Daniel McKenna
Alan Kaplinsky
Alan Kaplinsky
Richard J. Andreano, Jr.
Richard J. Andreano, Jr.
John L. Culhane, Jr.
John L. Culhane, Jr.
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The CFPB is transferring all of its pending litigation to the Justice Department as a result of the funding crisis the Trump Administration has said the bureau faces, several news organizations have reported.

In addition, at a meeting on Thursday, Michael Salemi, the CFPB's acting director of enforcement, said that more than 100 people will be furloughed because the CFPB is running out of money, The American Banker reported.

On December 10, 2025, Acting CFPB Director Russ Vought informed the U.S. District Court for the District of Columbia that the Bureau will run out of money by early 2026 unless Congress provides a direct appropriation.

The Department of Justice's Office of Legal Counsel has recently concluded that the CFPB cannot legally draw additional funds from the Federal Reserve while the Fed is operating at a loss, and that doing so would violate the law.

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