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To: DSH
"The statute that authorizes the Bureau to draw money from the combined earnings of the Federal Reserve System to carry out its duties satisfies the Appropriations Clause," Justice Clarence Thomas, a conservative, wrote for the majority.

In other words, the CFPB's funding structure is legal because Congress said so. Sounds like a no-brainer to me.

How is this any different than Congress legislating a funding mechanism for Federal lands protection through the U.S. Dept. of the Interior -- using grazing fees, oil/gas drilling royalties, or visitor fees at national parks as the source of the funds?

9 posted on 05/16/2024 8:03:53 AM PDT by Alberta's Child (If something in government doesn’t make sense, you can be sure it makes dollars.)
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To: Alberta's Child

Because unlike a fee collected at a national park, this funding source is a financial sleight-of-hand. The federal reserve’s income comes mostly from interest on Treasury bills it holds, i.e. federal debt. By law, that income would normally go back to the Treasury, so now apparently some of it instead will go to CFPB. This can only happen because the government is keeping two sets of books (3 if you count the social security system). The CFPB is being funded through accounting fictions. Does it have a budget cap? I don’t know, that would normally be set in the appropriation. since the federal reserve’s “income” is the hundred-billion range, this means CFPB could become one of the largest federal agencies over time, other than Medicare/medicaid and SS.


18 posted on 05/16/2024 10:10:46 AM PDT by TimSkalaBim
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