F
ederal Judge Amy Berman Jackson has ordered that the Consumer Financial Protection Bureau (CFPB) receive funding through a February hearing, halting the Trump administration’s attempt to cut its budget. The Justice Department’s Office of Legal Counsel (OLC) argued that the Federal Reserve could no longer finance the CFPB because it has been operating at a loss since 2022, but the court rejected this claim, noting that the Dodd‑Frank Act obligates the Fed to provide the agency’s funding. The OLC’s position marked a sharp shift from the long‑standing interpretation of the bureau’s statutory funding. Over 20 states have joined the lawsuit to prevent the CFPB’s defunding, underscoring the legal battle that continues.

    In Washington, President Donald Trump announced that he will name his choice for Federal Reserve Chair in January. Jerome Powell’s term expires in May, and Trump has openly criticized him, calling the current chair “an absolute fool” and threatening to sue over alleged incompetence. Trump also hinted that he might dismiss Powell, saying he “still might” fire him. While a handful of candidates remain in the running, the president has indicated a clear favorite and plans to make the formal announcement in the new year.

    HUD Secretary Scott Turner addressed the administration’s housing agenda, noting that the controversial 50‑year mortgage proposal remains under review. Turner said that more research is needed before any decision can be made and that the administration will convene in the new year to explore aggressive housing reforms promised by Trump. The 50‑year mortgage, which has drawn criticism, has not been dismissed outright, but its viability is still uncertain.

    The Trump administration’s broader strategy to “starve the CFPB of funding” has been described by the court as an unsupported attempt to eliminate a Congress‑created agency. The judge emphasized that neither the statute, the injunction, nor the Fed’s willingness to pay has changed, and that the only new factor is the administration’s desire to dismantle the bureau while the case is pending before the Court of Appeals. The legal dispute over the CFPB’s future began in early 2025 when officials sought to shut the bureau down, prompting the current court order and the states’ counter‑lawsuit.

    In summary, the CFPB will remain funded until the February hearing, the Fed chair nomination will be announced in January, and the 50‑year mortgage proposal will undergo further study. The administration’s efforts to cut the CFPB’s budget have been halted by the judiciary, while the housing policy debate continues with a focus on research and potential reforms.