The lawsuit has to do with the Trump administration's argument that the CFPB can only be funded by the Federal Reserve's profits. The Federal Reserve has been running a loss since 2022, a side effect of the Fed raising interest rates sharply to combat inflation, because it holds bonds that pay low interest from the pandemic but it needs to pay out higher amounts of interest to the banks that hold their deposits with the bank.

A coalition of 21 attorneys general from Democratic-led states has sued the Consumer Financial Protection Bureau and its director, Russell Vought.