Supreme Court rules in favor of CFPB, brainchild of Sen. Elizabeth Warren

The Supreme Court ruled on Thursday that the funding mechanism that feeds the Obama-era agency Consumer Financial Protection Bureau (CFPB) is constitutional.

In a 7-2 decision, authored by Justice Clarence Thomas, the court held that Congress uniquely authorized the bureau to draw its funding directly from the Federal Reserve System, therefore allowing it to bypass the usual funding mechanisms laid out in the Appropriations Clause of the Constitution. 

"For most federal agencies, Congress provides funding on an annual basis.