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"By refusing to fund the CFPB, even when legal and appropriate funding mechanisms are available, the Trump administration has sharpened its message that it does not care about affordability."
A coalition of attorneys general from across the US sued White House budget chief Russell Vought on Monday over his effort to completely starve the Consumer Financial Protection Bureau of funding, a ploy that—if successful—would eliminate a key path of recourse for Americans harmed by corporate abuses.
The lawsuit was filed in a federal court in Portland, Oregon by the top law enforcement officials of 20 states—including New York, California, Maine, and Hawaii—and the District of Columbia. The suit notes that Vought, in his capacity as acting director of the consumer bureau, "has worked tirelessly to terminate the CFPB’s operations by any means necessary—denying plaintiffs access to CFPB resources to which they are statutorily entitled."
The attorneys general specifically challenge Vought's "unlawful" refusal to request CFPB funding from the Federal Reserve. Under the law that established the consumer bureau, the agency receives funding from the Fed rather than congressional appropriations.
Vought has advanced a tortured definition of "earnings" to argue the Fed lacks funds from which the CFPB can draw, leaving him with no choice but to allow the agency he and his far-right allies have long opposed to languish.
The new lawsuit argues that Vought's position violates the Administrative Procedure Act and the US Constitution. If allowed to stand, Vought's refusal to seek CFPB funds would "make it all but certain that the CFPB will run out of funding completely in January 2026."
California Attorney General Bonta said in a statement Monday that the Trump administration’s "latest effort to destroy the CFPB means that hundreds of thousands of consumer complaints will fall on deaf ears."
"By refusing to fund the CFPB, even when legal and appropriate funding mechanisms are available, the Trump administration has sharpened its message that it does not care about affordability, that it does not care to be on the side of families and working Americans," said Bonta.
The CFPB has been a target of big banks and other powerful corporations since its creation in the wake of the 2008 financial crisis. The agency's success—it has returned more than $21 billion to consumers since 2011—has only intensified efforts by corporate-friendly lawmakers and right-wing bureaucrats to gut it.
Since taking control of the CFPB earlier this year, Vought has effectively shut down bureau operations and signaled a lax approach to enforcement.
US Sen. Elizabeth Warren (D-Mass.), an architect of the CFPB, applauded the state attorneys general for taking legal action against Vought.
“The Trump administration’s latest illegal attempt to shut down the Consumer Financial Protection Bureau will hurt families in every state across the country—and now states are fighting back," said Warren. "Today’s new lawsuit underscores how illegally starving the agency of funding would turn off the consumer complaint database that has helped millions of Americans at the end of their rope after getting scammed."
"If courts uphold the law," she added, "they’ll reject this attempt to sideline the financial cop on the beat that has returned more than $21 billion directly to Americans cheated by big banks or giant corporations.”
"For more than five months, the Trump administration has held California National Guard troops hostage as part of its political games," said California's attorney general. "But the president is not king."
In a win for Democratic California Gov. Gavin Newsom, state Attorney General Rob Bonta, and the residents of Los Angeles, a federal judge on Wednesday ordered President Donald Trump to stop deploying the National Guard in the nation's second-largest city.
"The founders designed our government to be a system of checks and balances," wrote US District Judge Charles Breyer, an appointee of former President Bill Clinton. "Defendants, however, make clear that the only check they want is a blank one."
Trump mobilized around 4,000 California National Guard troops in June amid protests against his violent crackdown on undocumented immigrants. Since then, the Republican leader has also pursued deployments in other Democrat-led cities, including Chicago, Illinois; Portland, Oregon; and Washington, DC, where two soldiers were recently shot.
The new ruling from San Francisco-based Breyer comes as the administration was cutting troops in LA from 300 to 100, according to the New York Times.
"Once again, a court has firmly rejected the president's attempt to make the National Guard a traveling national police force."
"Six months after they first federalized the California National Guard, defendants still retain control of approximately 300 guardsmen, despite no evidence that execution of federal law is impeded in any way—let alone significantly," the judge said. "What's more, defendants have sent California guardsmen into other states, effectively creating a national police force made up of state troops."
After ruling in September that Trump's deployment of Marines in Los Angeles violated the 1878 Posse Comitatus Act, the judge on Wednesday blocked the president's federalization of California National Guard troops—but he also halted his own decision until next Monday, allowing for appeals.
Despite the prospect that the Trump administration would continue the court fight, Bonta and Newsom—who is expected to run for president in 2028—welcomed the ruling.
"Once again, a court has firmly rejected the president's attempt to make the National Guard a traveling national police force," Bonta said in a statement. "For more than five months, the Trump administration has held California National Guard troops hostage as part of its political games."
"But the president is not king. And he cannot federalize the National Guard whenever, wherever, and for however long he wants, without justification," the attorney general declared. "This is a good day for our democracy and the strength of the rule of law."
In addition to battling Trump's invasion of LA, Bonta has backed lawsuits filed by Illinois Attorney General Kwame Raoul, Oregon Attorney General Dan Rayfield, and DC Attorney General Brian Schwalb challenging the president's deployments in their cities and filed an amicus brief with the US Supreme Court for the Chicago fight.
"The federal government cannot prioritize its cruel immigration agenda over Americans' safety," said New York's attorney general, who was part of the case.
A federal judge ruled Wednesday that US President Donald Trump's attempt to bully states states into cooperating with his administration's anti-immigrant crackdown by conditioning emergency and disaster aid upon such cooperation is unconstitutional.
Judge William Smith of the US District Court for the District of Rhode Island—an appointee of former President George W. Bush—sided with 20 Democrat-led states and the District of Columbia, asserting in his 45-page ruling that "several contested conditions attached to the award of federal grants under the Department of Homeland Security are beyond the scope of DHS’ statutory authority, are a violation of the Administrative Procedure Act (APA), and are unconstitutional."
"The court finds that the contested conditions are arbitrary and capricious and thus invalid under the APA and are also a violation of the conditions attached to the spending clause and thus unconstitutional," Smith added.
The 20 states and DC sued the administration in May, arguing that DHS was illegally using federal funds meant for emergency readiness and disaster relief to strong-arm them into cooperating with Trump's anti-immigrant crusade. In order to qualify for federal funds, states were ordered to grant federal immigration agents access to detainees and honor requests for cooperation, including by taking part in joint operations, sharing information, or holding detained immigrants.
The attorneys general in the case welcomed Smith's decision.
We just won our lawsuit against the DHS after a judge ruled the department can't hold life-saving disaster relief funds hostage to advance its anti-immigration efforts. The federal government cannot prioritize its cruel immigration agenda over Americans' safety.
— New York Attorney General Letitia James (@newyorkstateag.bsky.social) September 24, 2025 at 1:32 PM
“Today is an important win for the rule of law and reaffirms that the president may not pick and choose which laws he and his administration obey," Democratic Rhode Island Attorney General Peter Neronha said in a statement. "Today’s permanent injunction by Judge Smith says, in no uncertain terms, that this administration may not illegally impose immigration conditions on congressionally allocated federal funding for emergency services like disaster relief and flood mitigation. Case closed."
“These cases can feel long and daunting, and we still have a long road ahead of us, to be sure," Neronha added. "But today’s decision reminds us that this president cannot impose his will where he does not have the lawful power to do so. And while he may continue to try, we will continue to fight.”
Democratic California Attorney General Rob Bonta, who was also involved in the case, hailed Wednesday's "excellent news."
"This is a final win in our case that will protect funding for our communities to defend against terrorist attacks and prepare for emergencies," he added. "This is a good day for the rule of law and public safety."