Consumer Financial Protection Bureau v. Community Financial Services Assn. of America, Ltd.
View Official PDFBelow are plain-language sections to help you understand what the Court decided in Consumer Financial Protection Bureau v. Community Financial Services Assn. of America, Ltd. and why it matters. Quotes are taken from the syllabus (the Court’s short summary at the start of the opinion).
Summary
A short, plain-English overview of Consumer Financial Protection Bureau v. Community Financial Services Assn. of America, Ltd..
The Supreme Court decided that the Consumer Financial Protection Bureau's (CFPB) funding mechanism, which allows it to draw funds from the Federal Reserve System, complies with the Appropriations Clause. The Court found that Congress's statutory authorization for the CFPB's funding is a valid appropriation. The decision reversed the Fifth Circuit's ruling that the funding mechanism was unconstitutional.
Holding
The single most important “bottom line” of what the Court decided in Consumer Financial Protection Bureau v. Community Financial Services Assn. of America, Ltd..
The Court held that Congress's statutory authorization allowing the CFPB to draw money from the Federal Reserve System satisfies the Appropriations Clause.
Constitutional Concepts
These are the Constitution-related themes that appear in Consumer Financial Protection Bureau v. Community Financial Services Assn. of America, Ltd.. Click a concept to see other cases that involve the same idea.
-
Why Spending Power is relevant to Consumer Financial Protection Bureau v. Community Financial Services Assn. of America, Ltd.
The case revolves around Congress's authority to establish a funding mechanism for the CFPB, which is a core aspect of the Spending Power.
Syllabus excerpt (verbatim)The Constitution gives Congress control over the public fsc subject to the command that '[n]o Money shall be drawn from the Treasury, but in Consequence of Appropriations made by Law.' Art. I, § 9, cl. 7.
-
Why Administrative Law is relevant to Consumer Financial Protection Bureau v. Community Financial Services Assn. of America, Ltd.
The case involves constitutional limits on agency authority and the separation of powers, specifically regarding the CFPB's funding mechanism.
Syllabus excerpt (verbatim)The associations' argument that the Bureau's funding mechanism violates the Appropriations Clause.
-
Why Nondelegation is relevant to Consumer Financial Protection Bureau v. Community Financial Services Assn. of America, Ltd.
The case touches on the limits of Congress's ability to delegate financial authority to the CFPB, which is related to the nondelegation doctrine.
Syllabus excerpt (verbatim)The associations argue that the Bureau's funding is not 'drawn . . . in Consequence of Appropriations made by Law' because the agency itself decides the amount of annual funding to draw from the Federal Reserve System.
Key Quotes
Short excerpts from the syllabus in Consumer Financial Protection Bureau v. Community Financial Services Assn. of America, Ltd. that support the summary and concepts above.
The Constitution gives Congress control over the public fsc subject to the command that '[n]o Money shall be drawn from the Treasury, but in Consequence of Appropriations made by Law.'
The Bureau's funding statute satisfies the requirements of the Appropriations Clause.
The associations' three principal arguments for why the Bureau's funding mechanism violates the Appropriations Clause are unpersuasive.
