On February 13, the CFPB and its Acting Director, Russell Vought, agreed to delay — for at least two weeks — any action that would defund the Bureau’s budget. The previous day, the Mayor and City Council of Baltimore as well as a nonprofit organization filed a complaint (covered by InfoBytes here) and moved for a temporary restraining order to prevent Vought from defunding the Bureau, arguing that, without funding, the Bureau would be unable to carry out specific functions as required by statute. The plaintiffs further argued the Acting Director’s decision to defund the CFPB violated the APA because it was arbitrary and capricious. The parties agreed to convert the motion to a request for a preliminary injunction and further agreed the CFPB would not (1) transfer money from the CFPB’s reserve funds (extra regular operating expenses), (2) relinquish control or ownership of the CFPB’s reserve funds or grant control or ownership to any other entity, (3) return any money from the reserve funds to the Fed or the Treasury, or (4) reduce the CFPB’s funding below the amount available as of its level on February 13 until February 28 — unless the court orders otherwise. The court has scheduled its ruling for the pending motion prior to 9  a.m. ET on February 28.

Visit our resource center, CFPB Pause: Where From Here?, to stay on top of the latest and what it may mean for the federal and state regulatory and enforcement landscape.