In a powerful defense of consumer protection, federal judge Amy Berman Jackson has blocked the Trump administration's attempt to defund the Consumer Financial Protection Bureau (CFPB), ensuring the critical financial watchdog remains operational and continues defending Americans from predatory financial practices.

The landmark ruling came after acting CFPB director Russell Vought claimed the Federal Reserve's operational losses prevented funding the agency, a legal argument Jackson swiftly dismantled in her comprehensive 32-page decision. Jackson characterized the administration's funding blockade as a "manufactured" strategy designed to undermine an agency Congress intentionally created to protect consumers.

Specifically, the judge rejected Vought's argument based on an Office of Legal Counsel memo suggesting no 'combined earnings' were available to support the CFPB. Jackson emphasized that funding for the agency has continued "seamlessly" since its 2011 establishment, even during years when the Federal Reserve's expenses exceeded its earnings.

The National Treasury Employees Union played a critical role in challenging the administration, previously securing a court order preventing mass firings and agency dismantling. Senator Elizabeth Warren celebrated the decision, highlighting the CFPB's remarkable track record of returning $21 billion directly to Americans who were financially exploited by large banks and corporations.

The DC Circuit Court of Appeals has already upheld Jackson's initial injunction and is scheduled to hear broader arguments about the CFPB's future in February 2026. Jackson's ruling came just days before the agency was set to exhaust its funding, effectively preserving its ability to continue protecting consumer financial interests.

This judicial intervention represents a significant victory for consumer rights, reaffirming the importance of independent regulatory agencies in safeguarding everyday Americans from potential financial misconduct. The CFPB can now continue its crucial work of monitoring and preventing predatory practices in the financial sector.