SPPI Expresses Disappointment in Supreme Court Ruling Upholding CFPB Funding Structure

Phoenix, AZ—The Southwest Public Policy Institute (SPPI), a limited-government free-market research institute and think tank, expresses profound disappointment in the recent Supreme Court decision to uphold the Consumer Financial Protection Bureau’s (CFPB) funding structure. The 7-2 ruling, which allows the CFPB to be funded directly by the Federal Reserve, sidesteps the necessary congressional appropriations process, granting the agency unprecedented autonomy.

“This ruling will only embolden Director Rohit Chopra and the CFPB, a regulatory body that has consistently overstepped its original mandate,” stated Patrick M. Brenner, President of SPPI. “By enabling this agency to operate without sufficient congressional oversight, we risk seeing an increase in regulatory overreach that will drive consumer prices up and stifle economic growth.”

SPPI believes that the CFPB’s unchecked power poses significant threats to the American economy. The CFPB’s broad regulatory actions, which have already extended beyond financial services into everyday consumer activities, undermine market efficiencies and transparency critical to maintaining competitive pricing.

The ruling undermines the principle of limited government and disregards the essential role of congressional oversight in regulatory processes. SPPI warns that without appropriate checks and balances, the CFPB’s expansive reach could lead to increased costs for businesses and consumers, harming the people the agency purports to protect.

“The Supreme Court’s decision is a setback for free-market principles and consumer choice,” Brenner added. “We urge policymakers to re-evaluate the CFPB’s mandate and funding structure to ensure it aligns with constitutional principles and supports, rather than hinders, economic prosperity.”

SPPI remains committed to advocating for sound public policy solutions that promote limited government, free markets, and the economic well-being of the American Southwest. We will continue to monitor and address the implications of this ruling and work towards reforms that protect consumer interests and market freedoms.