BALTIMORE, MD – Maryland Attorney General Anthony G. Brown joined 20 other states and the District of Columbia on December 22, 2025, in filing a lawsuit in U.S. District Court in Oregon to block the Trump administration’s efforts to defund the Consumer Financial Protection Bureau. The action marks the 47th lawsuit in which Brown’s office has participated against administration policies since President Donald Trump’s second inauguration on January 20, 2025.
The coalition alleges that the administration’s refusal to request funding from the Federal Reserve unlawfully threatens to shut down the CFPB, an agency established by Congress in 2010 under the Dodd-Frank Wall Street Reform and Consumer Protection Act following the 2008 financial crisis. The suit claims this violates separation of powers and leaves consumers vulnerable to financial exploitation.
Attorney General Brown stated, “The Trump administration’s attempt to completely defund the CFPB is both illegal and dangerous for Maryland families. We’re suing to stop this unlawful defunding scheme that violates the separation of powers and will leave Marylanders more vulnerable to financial exploitation.”
Acting CFPB Director Russell Vought, also director of the Office of Management and Budget, requested $0 in funding for the third quarter of fiscal 2025 in a letter to Federal Reserve Chair Jerome Powell on February 8, 2025. Vought then directed staff to stand down from work tasks and initiated steps to terminate more than 1,400 employees. The lawsuit warns that without intervention, the bureau will exhaust funding in January 2026.
The CFPB has returned more than $21 billion improperly taken from over 205 million Americans since its inception. Its 2024 consumer response annual report documented more than 3 million complaints resulting in about $90 million in monetary relief. In Maryland, approximately 83,000 complaints led to $1.7 million awarded to consumers.
Participating jurisdictions include Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, North Carolina, Oregon, Rhode Island, Vermont, Wisconsin, and the District of Columbia.
The lawsuit challenges the administration’s interpretation of the CFPB’s funding mechanism, which draws from the Federal Reserve’s “combined earnings.” The states argue the refusal stems from an unreasonable view that limits funding to profits amid the Fed’s recent operating losses, contrary to congressional intent.
This legal challenge follows earlier efforts in 2025, including amicus briefs opposing CFPB dismantling, amid broader multistate actions by Democratic attorneys general against administration policies on consumer protection, federal workforce reductions, and other areas.
Colorado Attorney General Phil Weiser described the administration’s actions as lawless, stating, “My standard hasn’t changed. The behavior of this administration has changed. They’re lawless again and again. They’re bullying. They’re reckless. They’re dangerous.”
The CFPB’s independent funding structure insulates it from annual appropriations, designed to maintain autonomy in enforcing consumer protection laws against unfair, deceptive, and abusive practices in banking, lending, and related services. The agency partners with state attorneys general to address issues like predatory lending and fraud.
For Southern Maryland residents in areas such as Calvert, Charles, and St. Mary’s counties, where many work in federal government, military, or related sectors, the CFPB’s complaint system provides a key resource for resolving financial disputes. The bureau’s data-sharing supports state-level enforcement, aiding in protections against scams, junk fees, and discriminatory practices that affect everyday consumers.
The suit seeks a court order requiring the CFPB to request available funding and resume operations. Parallel litigation, including challenges from federal employee unions, addresses similar funding and personnel issues. Outcomes could influence how executive authority interacts with congressionally established agencies.
