In a 32-page decision, DC district judge Amy Berman Jackson said that this novel workaround by the Trump administration to starve the agency of funding was manufactured by the defendants and based solely on an office of legal counsel memo, which said that there were no combined earnings available from the Fed for the CFPB since the agency doesn't receive its appropriations from Congress.
U.S. District Judge Jia Cobb, who was nominated to the bench by Democratic President Joe Biden, concluded that the seven-day notice requirement likely exceeds the Department of Homeland Security's statutory authority. Plaintiffs have an interest in facts about whether facilities are overcrowded or unsanitary, whether the staff is engaging in abuse, or the location of constituents or their family members, the judge wrote.
That effort took a major hit this week when a judge granted an injunction allowing Cook to remain in her post. U.S. District Judge Jia Cobb wrote in a ruling Tuesday that removal of a Federal Reserve Governor extends only to concerns about the Board member's ability to effectively and faithfully execute their statutory duties, in light of events that have occurred while they are in office.
To be clear, no one disputes that defendants have significant discretion in how to spend the funds at issue, and the court is not directing defendants to make payments to any particular recipients, wrote Ali, who was nominated by Joe Biden. But defendants do not have any discretion as to whether to spend the funds. Ali said Congress would have to approve the rescission proposal for the administration to withhold the money.
