New Jersey Acting Attorney General Jennifer Davenport announced that the state is co-leading a legal effort with other states to prevent the federal government from cutting funding to the Consumer Financial Protection Bureau (CFPB). The motion seeks an expedited court decision to stop the Trump Administration from ending CFPB funding before it expires at the end of March.
Governor Mikie Sherrill commented on the issue, stating, “Across the nation, prices are skyrocketing for middle- and working-class families. In New Jersey, people are struggling to keep up as endless attacks from Washington continue to drive rising costs. Defunding the CFPB will compound the affordability crisis we are facing, doing away with critical consumer protections that New Jerseyans rely on. My Administration is committed to protecting our residents, fighting for affordability, and holding the Trump Administration accountable for their actions that erode the public’s trust.”
Acting Attorney General Davenport added, “Our promise is clear: when officials in Washington issue unlawful policies that increase costs here in New Jersey, we will be there to protect our residents. The CFPB exists to ensure that federal and state agencies can protect consumers from threats like price gouging, and that work is needed now more than ever as New Jerseyans and the rest of the country struggle with an affordability crisis. Because the Federal Government is trying to unlawfully defund the CFPB, I’m proud to stand with my colleagues and lead the fight to prevent these illegal, cost-raising actions.”
The coalition of 22 states argues that losing CFPB funding would undermine both federal and state efforts aimed at consumer protection. The motion highlights concerns about how such a move could impact states’ ability to respond effectively to consumer complaints and investigate financial wrongdoing.
The Trump Administration has stated it will only fund the CFPB if there are available profits from the Federal Reserve—a departure from established law and practice. This position led officials recently to limit requested funding for only part of 2026 after a court order in another case.
The CFPB was created following the Great Recession as an independent agency funded by the Federal Reserve. Its mandate includes regulating financial institutions, enforcing rules designed to protect consumers, collecting economic data, handling millions of consumer complaints annually, and returning billions of dollars improperly taken from Americans over its history.
States such as New Jersey regularly collaborate with or depend on information provided by CFPB for their own investigations into predatory practices or discriminatory lending under laws like the Home Mortgage Disclosure Act. Defunding would remove this resource used by states for enforcement actions against financial institutions.
Attorneys general from New York, Oregon, Colorado, California—alongside those representing Arizona, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Mexico, North Carolina, Rhode Island Vermont Wisconsin—and Washington D.C., have joined in filing this suit.
