On February 12, the city of Baltimore filed a lawsuit against the Trump administration and CFPB Acting Director Ross Vought, alleging that efforts to defund the agency violate the Administrative Procedure Act. The lawsuit argues that unilaterally stripping the CFPB of its funding is unlawful, and is “arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law.”
As a result of the lawsuit, the city is seeking an injunction to prevent any actions that could disrupt the agency’s financial stability.
Putting It Into Practice: The lawsuit represents a notable challenge to the Trump administration’s efforts to reshape the CFPB. The outcome could have far-reaching implications for the agency’s future and its ability to carry out its consumer protection mandate. We will continue to monitor this case for new developments.