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Enforcement ActionLow RiskMultistate

State AGs Sue Trump Admin to Block CFPB Defunding

Trump AdministrationDecember 22, 2025Connecticut Attorney General

Summary

Attorney General William Tong joined a coalition of 21 states and D.C. in suing the Trump administration to prevent the defunding of the Consumer Financial Protection Bureau (CFPB). The lawsuit argues that the defunding is unlawful and would cripple consumer protection efforts and state enforcement capabilities. The coalition seeks a court order to ensure CFPB continues to receive funding and fulfill its duties.

Remedy

The lawsuit seeks an injunction preventing the administration from defunding the CFPB and ordering the agency to request funding from the Federal Reserve as required by law.

Injunction

Contract Impact

In-house legal teams should review contracts with financial institutions or involving consumer financial products to ensure compliance with CFPB regulations and consumer protection laws. Clauses related to data sharing with federal agencies, consumer complaint resolution, and adherence to regulatory requirements may need assessment due to potential changes in CFPB enforcement. Additionally, consider provisions that account for federal agency funding stability and state-federal cooperation in consumer protection.

Contract Search Terms

CFPB complianceconsumer protection clausesdata sharing with regulatorsconsumer complaint handlingfederal funding requirementsregulatory oversightfinancial institution supervision

Violation Types

Entity Details

Entity

Trump Administration

Industry

Other

Multistate Coalition

Official Sources

Source Evidence

Entity Name
"the Trump administration"
Summary
"to stop the complete defunding of the Consumer Financial Protection Bureau (CFPB)"

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