The U.S. Supreme Court on Monday agreed to decide whether the Consumer Financial Protection Bureau’s funding structure established by Congress violates the U.S. Constitution in a case that President Joe Biden’s administration has said threatens the agency’s ability to function and risks market disruption. The justices took up the CFPB’s appeal of a lower court’s ruling in a lawsuit brought by trade groups representing the payday loan industry that the agency’s funding mechanism violated a constitutional provision giving lawmakers the power of the purse. The agency, which enforces consumer financial laws, draws money each year from U.S. Federal Reserve earnings rather than budgets passed by Congress.
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