The U.S. Supreme Court on Monday agreed to decide whether the Consumer Financial Protection Bureau’s funding structure established by Congress violates the U.S. Constitution in a case that President Joe Biden’s administration has said threatens the agency’s ability to function and risks market disruption. The justices took up the CFPB’s appeal of a lower court’s ruling in a lawsuit brought by trade groups representing the payday loan industry that the consumer watchdog agency’s funding mechanism violated a constitutional provision giving lawmakers the power of the purse. The agency draws money each year from Federal Reserve earnings rather than budgets passed by Congress.
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