High Noon for the CFPB at the Supreme Court

The Supreme Court begins a new term on Monday, and its first week includes some important repair work on the Constitution’s separation of powers. On Tuesday the Justices will hear a challenge to the unconstitutional design of the Consumer Financial Protection Bureau (CFPB v. Community Financial Services Association).

Democrats in Congress constructed the CFPB to be insulated from accountability by the political branches. This fits the progressive vision of an administrative state run by supposed experts who will instruct Americans on proper behavior whether they like it or not.

The Dodd-Frank Act that created the CFPB tried to insulate it from presidential control by saying the bureau’s director could only be removed “for cause.” The Supreme Court found that unconstitutional in 2020, and now the Justices will consider the agency’s funding mechanism that is intended as protection from Congressional appropriations.