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flag Twenty-one states sue CFPB over funding dispute, warning of shutdown.

flag Twenty-one Democratic-led states sued the Consumer Financial Protection Bureau and its director, Russell Vought, over the Trump administration’s decision to withhold funding, arguing the move is unconstitutional. flag The administration claims the CFPB can only be funded through the Federal Reserve’s profits, but the Fed has operated at a loss since 2022 due to rising interest rates. flag The states contend this interpretation violates congressional intent and threatens the agency’s ability to protect consumers, warning of a potential shutdown by January.

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