District court rejects Baltimore’s TRO Request in CFPB defunding case

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On March 14, the U.S. District Court for the District of Maryland issued an order rejecting a request from the city of Baltimore for a temporary restraining order. The order attempted to halt the Trump administration’s effort to send the CFPB’s appropriations back to the Treasury or Fed. The court ruled in a memorandum that the plaintiffs failed to make a “clear showing” of success on the merits because there was no evidence the defendants have “made or acted upon a decision to transfer away the funds presently available to it to fulfill the CFPB’s statutory mandate.” Without a final agency action, the court determined the plaintiffs’ challenge was not ripe for judicial review.

As previously covered by InfoBytes, the Mayor and City Council of Baltimore filed a request for injunctive relief against the CFPB and its Acting Director Russell Vought. In the complaint, the plaintiffs argued Vought’s plan to effectively defund the CFPB was unlawful under the APA, as it would leave the CFPB unable to fulfill its statutory responsibilities.

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