On February 7, both Elon Musk and Vivek Ramaswamy made posts on social media regarding the CFPB; Elon Musk posted “CFPB RIP,” while Vivek Ramaswamy’s post delved into the CFPB’s funding mechanism. Ramaswamy highlighted the Bureau was financed by the Fed rather than through Congress’s appropriations process. Ramaswamy suggested this funding mechanism was a strategic move by Democrats to bypass congressional oversight; however, he argued this mechanism could allow a President to defund the Bureau without congressional approval. As previously covered by InfoBytes, the CFPB’s funding structure was upheld as constitutional after the U.S. Supreme Court ruled 7-2 that the funding structure of the CFPB was consistent with the Constitution’s Appropriations Clause.
That same day, Russell Vought assumed the Acting Director role and posted on social media regarding the CFPB’s funding: “Pursuant to the [CFPA], I have notified the Federal Reserve that CFPB will not be taking its next draw of unappropriated funding,” averring that it is unnecessary to its duties. Vought then stated the Bureau’s current balance of $711.6 million was “excessive” amid the current fiscal status.
