On November 10, the U.S. District Court for the District of Columbia received a notice from the CFPB informing the court that the DOJ’s Office of Legal Counsel has determined the Bureau may not legally request funds from the Fed under the Dodd-Frank Act at this time. The OLC’s opinion concluded the Fed currently lacks any “combined earnings” from which the CFPB may draw, as required by statute. The CFPB’s release noted that the Bureau expects to have sufficient funds to continue operations until at least December 31, but anticipates exhausting its available funds in early 2026.

Previously, the Bureau maintained that it could draw funds from the Fed’s revenues, but now accepts that only profits, not revenues, qualify as “combined earnings” under the Dodd-Frank Act. The OLC’s memorandum explained that the Dodd-Frank Act authorizes the CFPB to draw funding from the “combined earnings of the Federal Reserve System,” but clarified that “earnings” refers to profits (revenues minus expenses), not gross revenues.

The OLC noted that, because the Fed has operated at a loss since 2022, there are currently no profits available for transfer to the CFPB. The OLC further stated that the only lawful way for the Bureau to obtain additional funding is to request appropriations from Congress.

The CFPB’s notice emphasized it does not know whether Congress will appropriate funding to cover the Bureau’s expenses. The Bureau indicated it will prepare a report to the president and congressional appropriations committees identifying its funding needs, as required by statute.