A federal court granted summary judgment to Minnesota AG Keith Ellison and a coalition of 22 attorneys general in their lawsuit challenging the CFPB Acting Director’s decision not to seek funding. The court held the refusal unlawful and required the current Acting Director to request necessary funding so the CFPB can continue operating.
The court held that the CFPB Acting Director must request necessary funding from the Federal Reserve to allow the agency to operate as Congress intended.
This ruling does not identify a privacy violation or impose new privacy-contract requirements. In agreements supporting consumer financial products, review vendor and customer clauses for complaint intake and escalation, access to complaint data, cooperation with regulators, consumer restitution, and notice of regulatory changes; ensure vendors can preserve and provide relevant records if the CFPB or state regulators investigate. Employee agreements are not specifically implicated by this action.
Entity
Consumer Financial Protection Bureau (CFPB)
Industry
Financial ServicesOfficial Press Release
https://www.ag.state.mn.us/Office/Communications/2026/09/28_CFPB.asp
cfpb opinion
https://oag.ca.gov/system/files/attachments/press-docs/cfpb-opinion.pdf
0 25 cv 02384 CFPB Complaint
https://www.ag.state.mn.us/Office/Communications/2025/docs/0-25-cv-02384_CFPB_Complaint.pdf
Minnesota Attorney General Enforcement Page
https://www.ag.state.mn.us/consumer/
"Consumer Financial Protection Bureau (CFPB)"
"violated the Separation of Powers Clause in the U.S. Constitution."
"the CFPB Acting Director’s unlawful decision not to fund the agency’s operations"
"the current CFPB Acting Director Mark Paoletta must request necessary funding from the Federal Reserve"
"a coalition of 22 attorneys general"
Oregon Attorney General Dan Rayfield and a coalition of 21 other attorneys general obtained a federal court order requiring the CFPB’s Acting Director to request funding from the Federal Reserve. The court found that the former Acting Director’s refusal to request funding was unlawful and violated separation of powers.
On April 17, 2026, Connecticut Attorney General William Tong joined a coalition of 23 state attorneys general in sending a comment letter to CFPB Acting Director Russell Vought opposing the CFPB’s proposed strategic plan, which would drastically reduce agency staffing, weaken supervision of financial institutions, and curtail enforcement capacity. The coalition argues the plan would abdicate the CFPB’s statutory obligations, leave consumers vulnerable to fraud and scams, and shift enforcement burden to state agencies. The letter urges the CFPB to reverse course and maintain robust consumer protection efforts.
Minnesota Attorney General Keith Ellison updated a consumer alert about Trajector Holdings, LLC’s Chapter 11 bankruptcy, informing veterans that the court extended their proof-of-claim deadline to November 30, 2026. The release reports no privacy violation, enforcement penalty, or remedy against the company; it also notes that Minnesota and other states joined the bankruptcy proceedings.
The Minnesota Attorney General alleged that Hendricks Community Hospital Association miscalculated discounts for uninsured patients and used a burdensome charity-care application. The settlement requires $171,800 in refunds or medical-debt reductions for eligible patients and a streamlined charity-care application.
$518K
The Minnesota Attorney General obtained a judgment against Ryan David Pietron and Affordable Home Remodeling, LLC, for deceiving homeowners, taking payment for renovation work that was not performed, and misrepresenting Pietron’s contractor licensing status. The judgment permanently bars them from Minnesota’s residential construction industry and orders restitution, civil penalties, and costs totaling $1,069,000.
Minnesota Attorney General Keith Ellison and the attorneys general of New Mexico, Oregon, and Washington sued to block the federal government from conditioning Medicaid funding on states implementing new work requirements. The lawsuit argues that threatening to withhold all Medicaid funding is unconstitutional coercion; the press release describes requested relief, not a court ruling or penalty.