A coalition of Democratic-led states filed a lawsuit on Monday seeking to prevent Donald Trump’s administration from defunding the US Consumer Financial Protection Bureau by refusing to request money from the Federal Reserve.
Democratic attorneys general from 21 states and the District of Columbia filed the lawsuit in federal court in Oregon, arguing that the administration’s decision not to seek additional funding for the US consumer watchdog is unlawful and undermines Congress’s authority under the US constitution.
“The administration’s actions are a handout to those who drive up costs by cheating hardworking Americans, and I will keep fighting to ensure they follow the law and our constitution,” New York attorney general Letitia James, a Democrat, said in a statement.
The CFPB did not immediately respond to a request for comment. Trump, a Republican, has sought to dismantle the CFPB since returning to office in January and has installed Russell Vought, his budget director, as the acting head of the agency. While efforts to fire most of its employees are tied up in litigation, Vought has effectively halted most CFPB activities.
The agency, which is tasked with protecting consumers in the financial sector, began operations in 2011 under Barack Obama after the 2008 financial crisis. It has since returned more than $21bn improperly taken from consumers, its supporters say.
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