https://www.ca5.uscourts.gov/opinions/pub/21/21-50826-CV0.pdf
The Fifth Circuit held last week that the Consumer Financial Protection Board (CFPB) cannot promulgate or enforce its regulations because, by law, it receives its operating funds each year from the Federal Reserve Board rather than time-limited appropriations statutes.
The Constitution's Appropriations Clause states: "No money shall be drawn from the treasury, but in consequence of appropriations made by law."
So, when they set this piece of shit agency up after 2008, the CFPB got it's money from the Federal Reserve directly. You can think of a million reasons why this might be a problem, even more than the problems of it getting tax dollars directly.
“Each year, the Bureau simply requests an amount “determined by the Director to be reasonably necessary to carry out the” agency’s functions. Id. § 5497(a)(1). The Federal Reserve must then transfer that amount so long as it does not exceed 12% of the Federal Reserve’s “total operating expenses.” [5th Circuit op.]
This is not an “appropriation”, its an “authorization” because it does not designate a specific sum. The Director is making the “appropriation” so its a violation of the Appropriation Clause.
Gee, the protectors of the consumers report to the banks? Great idea. Next, let's have the CDC get its funding from pharma companies. And have Congress wear badges on their uniforms, showing which military-industrial company owns them.