Attorney General Matthew J. Platkin announced that New Jersey is co-leading a lawsuit with 21 other states to prevent the Trump Administration from halting funding for the Consumer Financial Protection Bureau (CFPB). The lawsuit claims that the administration’s refusal to request funding from the Federal Reserve will leave the CFPB without money by January 2026, affecting consumer protection efforts across the country.
The CFPB was created after the Great Recession and is funded through the Federal Reserve. It oversees financial institutions, enforces regulations, collects economic data, and handles consumer complaints. According to Attorney General Platkin, “While consumers are facing an affordability crisis, the Trump Administration has spent the last several months currying favor with billionaires by trying to gut the CFPB and give unscrupulous businesses free reign to exploit and abuse consumers. It is unconscionable that the Trump Administration is trying to re-write federal laws to support their extreme crusade against consumer protection laws and ordinary consumers,” said Attorney General Platkin. “The CFPB is a critical partner in our work to keep costs down for consumers and protect them from predatory businesses. I am proud to stand alongside my colleagues as we continue to protect the CFPB, our residents, and their wallets.”
The agency has returned more than $21 billion improperly taken from over 205 million Americans since its founding. States like New Jersey rely on data from the CFPB for enforcement actions and investigations into issues such as discriminatory lending under laws like the Home Mortgage Disclosure Act.
New Jersey has previously partnered with the CFPB on large-scale investigations. One example includes a settlement involving Ocwen Financial Corporation following an investigation into mortgage servicing misconduct. Another case involved coordination with Pennsylvania and Delaware in investigating redlining practices by Trident Mortgage Company.
In November, members of the Trump Administration argued that only Federal Reserve “profits” can fund CFPB operations—a claim disputed by state attorneys general in this suit.
The lawsuit seeks a court order requiring continued funding for CFPB so it can fulfill its statutory duties.
Attorney General Platkin led this legal action alongside attorneys general from New York, Oregon, Colorado, California, Arizona, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Mexico, North Carolina, Rhode Island, Vermont, Wisconsin and Washington D.C.
The New Jersey Attorney General’s office provides legal support and oversight throughout all counties in New Jersey. Its responsibilities include law enforcement supervision and consumer protection services statewide.
