When is an appropriationAppropriation not an appropriation? This is the conundrum that the Supreme Court faced in Consumer Financial Protection Bureau v. Community Financial Services Association of America, Limited. The Court overturned a challenge to the funding structure of the CFPB by adopting a “source-and-purpose” approach to the Appropriations Clause. A 7-2 majority held that as long as Congress designated a source of funding and specified a purpose for the funding, an appropriation does not need to be renewed annually to comply with the Appropriations Clause. The dissenters disagreed, arguing that the possibility of open-ended appropriations violated the separation of powers structure required by the Appropriations Clause. By upholding the funding structure, the Court allowed the CFPB to continue to operate and enforce the Payday LendingRule.

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Consumer Finance Protection Bureau v. Community Financial Services Ass’n: When Is an Appropriation Not an Appropriation?

  • Chase Porter

摘要

When is an appropriationAppropriation not an appropriation? This is the conundrum that the Supreme Court faced in Consumer Financial Protection Bureau v. Community Financial Services Association of America, Limited. The Court overturned a challenge to the funding structure of the CFPB by adopting a “source-and-purpose” approach to the Appropriations Clause. A 7-2 majority held that as long as Congress designated a source of funding and specified a purpose for the funding, an appropriation does not need to be renewed annually to comply with the Appropriations Clause. The dissenters disagreed, arguing that the possibility of open-ended appropriations violated the separation of powers structure required by the Appropriations Clause. By upholding the funding structure, the Court allowed the CFPB to continue to operate and enforce the Payday LendingRule.