The U.S. Supreme Court ruled today in Consumer Financial Protection Bureau v. Community Financial Services Association of America, Ltd. that the CFPB’s funding mechanism—by which it draws funds directly from the Federal Reserve outside the annual congressional appropriations process—does not violate the Constitution’s Appropriations Clause. In a 7-2 decision authored by Justice Thomas, the Court reversed the Fifth Circuit’s 2022 decision that invalidated the CFPB’s Payday Lending Rule on constitutional grounds.