TRENTON, N.J. — Acting Attorney General Jennifer Davenport said New Jersey is co-leading a multistate court motion seeking an expedited order to stop the Trump administration from defunding the Consumer Financial Protection Bureau before the agency’s current funding expires at the end of March.
Davenport said the move to cut off funding would weaken federal and state consumer protection efforts that rely on CFPB complaints and data, and would come as many households struggle with rising costs.
“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,” said Governor Mikie Sherrill. “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.”
“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,” said Acting Attorney General Davenport. “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.”
New Jersey and 21 other states sued the Trump administration in December over what they described as threats to leave the CFPB without funding, according to Davenport’s office. The coalition argues the administration has taken the position that the CFPB can only be funded when the Federal Reserve has available “profits,” and recently sought funding only through March 2026, the office said.
The new motion asks the court to require the CFPB to keep seeking funding from the Federal Reserve that is available under federal law, before the agency is “permanently damaged” by attempts to dismantle it, Davenport’s office said.
Created after the Great Recession, the CFPB is an independent consumer watchdog funded through the Federal Reserve and charged with regulating financial products and institutions, enforcing consumer protection rules, collecting data and handling consumer complaints. Davenport’s office said the bureau has returned more than $21 billion to consumers over its existence.
Davenport is co-leading the case with attorneys general from New York, Oregon, Colorado and California, her office said. The coalition also includes Arizona, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Mexico, North Carolina, Rhode Island, Vermont, Wisconsin and the District of Columbia
