Attorney General Matthew J. Platkin of New Jersey announced that the state is co-leading a lawsuit with 21 other attorneys general to prevent the Trump Administration from defunding the Consumer Financial Protection Bureau (CFPB). The coalition argues that the administration’s refusal to request funding for the CFPB from the Federal Reserve would leave the agency without resources by January 2026, impacting consumer protection efforts nationwide.
The CFPB, established after the Great Recession, is funded through the Federal Reserve and oversees financial institutions and products to protect consumers. It creates and enforces regulations, collects economic data, and handles millions of consumer complaints each year. 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 lawsuit seeks a court order requiring the administration to request necessary funding for CFPB operations. The attorneys general argue that cutting off funds would remove a vital resource for addressing consumer complaints and supporting enforcement actions against financial institutions.
New Jersey frequently collaborates with the CFPB on investigations affecting residents across all counties in the state. For example, New Jersey joined other states in a $2.1 billion settlement with Ocwen Financial Corporation after investigating mortgage servicing misconduct. In another case, New Jersey worked with Pennsylvania and Delaware in coordination with CFPB on addressing discriminatory mortgage lending practices by Trident Mortgage Company.
The Trump Administration’s recent stance claims that only Federal Reserve “profits” can fund CFPB activities; as such profits are reportedly unavailable, no funding was requested for 2026.
Attorney General Platkin co-led this legal action alongside his counterparts from New York, Oregon, Colorado, and California. Additional states participating include Arizona, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Mexico, North Carolina, Rhode Island, Vermont, Wisconsin as well as Washington D.C.
As outlined on its official website, the New Jersey Attorney General’s Office provides statewide enforcement of laws and public safety oversight throughout all municipalities. Its services include legal representation for state agencies as well as consumer protection initiatives—roles which depend on data provided by agencies like CFPB (source). The office also regulates public safety matters under its statutory mandate (source).
