Justice Clarence Thomas, left, wrote the 7-2 majority opinion in favor of the CFPB, with Justices Samuel Alito, right, and Neil Gorsuch dissenting. (Jabin Botsford/The Washington Post via Getty Images)
The CFPB, launched in 2008 with the help of Democrat Senator Elizabeth Warren, D-Mass., in the aftermath of the market crash, with authority to regulate banking and lending agencies via federal rules.
A group of banking associations, represented by former solicitor general Noel Francisco, sued the CFPB, arguing that because the agency, not Congress, decides the amount of annual funding and draws it from the Federal Reserve, it violates the Appropriations Clause.
The Supreme Court’s majority disagreed, saying, "Although there may be other constitutional checks on Congress’ authority to create and fund an administrative agency, specifying the source and purpose is all the control the Appropriations Clause requires.
"The statute that authorizes the Bureau to draw money from the combined earnings of the Federal Reserve System to carry out its duties satisfies the Appropriations Clause," the opinion states.
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Associate Justice Samuel Alito. (AP Photo/J. Scott Applewhite, File)
"That is not what the Appropriations Clause was understood to mean when it was adopted. In England, Parliament had won the power over the purse only after centuries of struggle with the Crown. Steeped in English constitutional history, the Framers placed the Appropriations Clause in the Constitution to protect this hard-won legislative power," he said.
Alito continued, "There are times when it is our duty to say simply that a law that blatantly attempts to circumvent the Constitution goes too far. This is such a case."
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"Today’s decision is not faithful to the original understanding of the Appropriations Clause and the centuries of history that gave birth to the appropriations requirement, and I therefore respectfully dissent," he concluded.
Brianna Herlihy is a politics writer for Fox News Digital.
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