WASHINGTON (NEWSnet/AP) — U.S Supreme Court on Thursday rejected an intiative that could have undermined Consumer Financial Protection Bureau.

The justices ruled 7-2 that the way CFPB is funded does not violate the Constitution, reversing a lower court.

CFPB was created after the 2008 financial crisis to regulate mortgages, car loans and other consumer finance. The case was brought by payday lenders who object to a bureau rule.

Consumer Financial Protection Bureau, the brainchild of Sen. Elizabeth Warren of Massachusetts, has long been opposed by Republicans and their financial backers.

Unlike most federal agencies, the consumer bureau does not rely on the annual budget process in Congress. Instead, it is funded directly by U.S. Federal Reserve, with a current annual limit of $600 million.

The federal appeals court in New Orleans ruled the funding violates the Constitution’s appropriations clause because it improperly shields CFPB from congressional supervision.

Follow NEWSnet on Facebook and X platform to get our headlines in your social feeds.

Copyright 2024 NEWSnet and The Associated Press. All rights reserved.