New York State Attorney General Letitia James speaks during a news conference in New York, September 8, 2022.
Caitlin Oakes | Reuters
WASHINGTON — New York Attorney General Letitia James is leading a multistate effort to press the Supreme Court to overturn a decision that threatened the existence of the nation’s leading consumer protection agency.
Attorneys general of 22 other states and the District of Columbia join New York friend of the court briefing went to court Tuesday in favor of the Consumer Financial Protection Bureau. The briefing came a day after dozens of current and former Democratic lawmakers filed a separate amicus brief in defense of the agency.
“The CFPB has demonstrated its ability to stand up for consumers and help states, including New York, ensure our residents are protected,” James said in a statement. “That’s why naysayers are attacking the agency. That’s why I’m proud to fight back against these blatantly anti-consumer protections. I will continue to join my fellow Attorney General in defending the CFPB and ensuring that it works alongside our respective states to help protect consumers across the country.”
The Supreme Court agreed to hear arguments in February after the Biden administration appealed a ruling by the U.S. Court of Appeals for the Fifth Circuit that the way the CFPB was funded was unconstitutional. The judge may not issue a final ruling until 2024.
The CFPB was established under the 2010 Dodd-Frank Act following the 2008 financial crisis. Congress chose to fund the agency from the Federal Reserve and allowed the CFPB to reverse the annual appropriations process, shielding it from unpredictable funding cycles.
Republican lawmakers have often criticized the CFPB for continuing to operate outside of appropriations, but Democrats argue the agency is subject to congressional oversight and must justify its budget to the House every six months.
The attorney general said in a statement that if the Supreme Court decides not to overturn the Fifth Circuit ruling, it could invalidate “many CFPB rules and other regulatory actions” and harm millions of Americans while undermining the Stability in the consumer financial sector.
Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, North Carolina States, Oregon, Pennsylvania, Rhode Island, Vermont, Washington and Wisconsin have signed amicus briefs with New York and the District of Columbia.