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The CFPB appears safe for now

Trump Solicitor General Noel Francisco would like to get rid of the Consumer Financial Protection Bureau. Fair enough. Lots of conservatives don't like it. But if he wants the Supreme Court to do this he has to provide them with a reason.

That reason, it turns out, has to do with funding. The CFPB is permanently funded (by the Fed) up to a maximum amount each year, not by an annual appropriation from Congress. Francisco thinks that's unconstitutional, even though the Fed itself is funded much the same way. More to the point, practically every "mandatory" program in the US government is funded this way: Social Security, Medicare, Medicaid, unemployment insurance, SNAP, WIC, etc. These are all entitlement programs, meaning that if you qualify you're entitled to them. Funding is guaranteed for everyone who's entitled.

Likewise, Congress did clearly pass a law appropriating money to the CFPB. That's not at issue. So what's the problem? Francisco had his day in court yesterday and it didn't go well:

As several justices repeatedly pointed out during their increasingly frustrating interrogation of Francisco, Trump’s former solicitor general had a difficult time pinning down why, exactly, he thinks the CFPB is unconstitutional.

Mainly he complained that CFPB isn't appropriated a fixed sum, but a cap:

But, as both Solicitor General Elizabeth Prelogar and many of the justices pointed out, there are gobs of federal laws — both modern and historical — that permit a federal agency to spend up to a specified cap.

Later he brought up the point that CFPB has a perpetual funding stream:

This is a common feature of US appropriations that also stretches back 230 years. Most federal spending is perpetual, including Social Security and Medicare....But his attempts to limit the scope of his argument produced baffled responses from many of the justices, several of whom were quite open about the fact that they couldn’t even understand the lines Francisco was trying to draw.

....While some members of the Court’s right flank initially appeared open to Francisco’s arguments, their patience seemed to thin as the argument went on. In his last exchange with Francisco, for example, Thomas asked the former Trump solicitor general to complete a sentence for him: “Funding of the CFPB violates the Appropriations Clause because ...”

You would think this is enough to produce an easy unanimous decision. The Constitution requires Congress to appropriate money. Congress did appropriate money, and it did so in the most common possible way.

But it appears there's likely to be one holdout. Not Clarence Thomas, because he's a loon who has goofy ideas, but our old pal Sam Alito, out of pure partisan hackery. It figures. We can only hope none of the other eight justices give him the satisfaction of not having to howl into the wind all alone.

8 thoughts on “The CFPB appears safe for now

  1. jte21

    Thomas asked the former Trump solicitor general to complete a sentence for him: “Funding of the CFPB violates the Appropriations Clause because ...”

    Wait, *Thomas* asked a question? Well that's a surprise. Not only that, it seems he's skeptical of the argument. But this is *precisely* the kind of stuff his billionaire junket-donating friends expect him to rule on the right way. We'll see if they get their money's worth, or if Thomas has even an electron-sized amount of shame.

  2. Brett

    He screwed up so bad that he actually got Clarence Thomas to speak during arguments and get on him about this? Wild.

    And yeah, the holdout will be Alito, the most hackish of all the Justices on the Court.

  3. tigersharktoo

    My question is what do our corporate overloads expect people (aka rubes) to do when the very limited protections are eliminated?

    The rubes remedies are:

    Write nasty letters? Work harder to pay off debt? Selling their children? Torches and Pitchforks? Guillotines? 2-A? IED's in banking centers?

    All of those have happened in history.

    1. Rattus Norvegicus

      Yeah, in the end Thomas can't support something as simple as the way Congress has pretty much always done it. Look for an invite for ADF or whatnot to bring a lawsuit which might get more traction.

  4. golack

    There was a case a while ago, and Robert's position was summed up as "lie better".

    Alas, the wingnuts keep getting worse, and it's now down to "what are your talking about???"

  5. pjcamp1905

    Well, first of all it is a bad idea to assume any former Trump official has any competence at what they do. Second, in this case Francisco is representing pay day lenders, the lowest of the low, soul crushing, predatory pond scum just one step removed from Mafia loan sharks. If CFPB is to stop predatory financial practices, they're first on the hit parade. For them, it's a hail Mary. What have they got to lose?

  6. melissabass

    Just FYI, WIC funding is appropriated. I don't know about other states, but Mississippi had just a few days funding left as of Sept 30, so the looming shutdown was a huge threat.

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