New Jersey is co-leading a coalition of states in a legal effort to prevent the Trump Administration from cutting off funding for the Consumer Financial Protection Bureau (CFPB) before current funding expires at the end of March. Acting Attorney General Jennifer Davenport announced that the motion, filed on an expedited basis, seeks to ensure continued financial support for the CFPB, which plays a key role in consumer protection.
Governor Mikie Sherrill commented on the situation, 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 includes 22 states responding to what they describe as an unprecedented move by federal officials who argue that CFPB funding should only come from Federal Reserve profits. The administration has said it would not seek available funds under existing law except through March 2026 after being compelled by court order in another lawsuit.
According to information provided by Acting AG Davenport’s office, if this change proceeds it could severely impact both federal and state consumer protection efforts. States use data and complaints collected by the CFPB for investigations into financial wrongdoing and rely on its resources for enforcement actions against predatory practices. The agency also collects lending data used by states like New Jersey under laws such as the Home Mortgage Disclosure Act.
Established after the Great Recession as an independent agency funded by the Federal Reserve rather than Congress’s annual appropriations process, the CFPB regulates financial institutions and products aimed at protecting consumers. Over its 14-year history it has returned more than $21 billion taken improperly from over 205 million Americans.
The legal action is led jointly by attorneys general from New York, Oregon, Colorado, California along with New Jersey’s acting attorney general. Other participating states include Arizona, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Mexico, North Carolina, Rhode Island Vermont Wisconsin and Washington D.C.
