NEW YORK (AP) — A coalition of 21 attorneys general from Democratic-led states sued the Consumer Financial Protection Bureau and its director, Russell Vought, on Monday, asserting that the White House's argument to withhold funds from the consumer protection agency is unconstitutional.
The lawsuit has to do with the Trump administration's argument that the CFPB can only be funded by the Federal Reserve's profits. The Federal Reserve has been running a loss since 2022, a side effect of the Fed raising interest rates sharply to combat inflation, because it holds bonds that pay low interest from the pandemic but it needs to pay out higher amounts of interest to the banks that hold their deposits with the bank.
The White House has argued for several months that the CFPB cannot lawfully draw funds to fund its operations from the Fed if the Fed does not have “combined earnings” to allocate to the bureau. Without additional funds, the CFPB is expected to deplete its operating funds completely in January.
The lawsuit, filed in U.S. District Court in Eugene, Oregon, seeks to force the Trump administration to fund the CFPB.
"We’re asking the court to order the Consumer Financial Protection Bureau to seek available funding and do its job,” California Attorney General Rob Bonta said at a press conference.
The phrase “combined earnings” is found in the text of the Dodd-Frank Act, the law that created the CFPB more than a decade ago. Legislators and policymakers from the time Dodd-Frank was crafted have argued that the phrase “combined earnings” was not meant to infer the Fed needed to make an actual profit to fund the CFPB. The White House's interpretation of the Dodd-Frank Act is being litigated in a separate lawsuit filed by the CFPB employees' union against Vought.
The Democratic AGs argue that the CFPB was lawfully created by Congress and the White House cannot pick and choose which parts of the government it wishes to fund or not. Further, the CFPB is required to provide consumer complaint information to the individual states to stop bad actors, and if the CFPB is not operating, it cannot meet its statutory requirements.
“Defunding the Consumer Financial Protection Bureau will make it harder to stop predatory lenders, scammers, and other bad actors from taking advantage of New Yorkers,” said Attorney General Letitia James of New York.
A spokeswoman for Vought did not respond to an email for comment.
AP Reporter Morgan Lee contributed to this report from Santa Fe, New Mexico.
The Federal Reserve Chair logo appears on a podium at the Federal Reserve, Wednesday, Dec. 10, 2025, in Washington. (AP Photo/Jacquelyn Martin)
NEW YORK (AP) — Jorge Polanco's experience at first base consists of one pitch, when San Francisco's Wilmer Flores lined a sinker off the end of his bat toward right field in the ninth inning of a tied game last April 6.
“It's just like they always say, whenever you come into the game, the ball always finds you," Polanco recalled through a translator on Monday. "When the ball was hit, I thought it was coming straight to me."
Flores' hit was way too far toward second for Polanco to have a chance at it, giving San Francisco a walk-off win over Seattle.
First base figures to be Polanco's primary position next year as Pete Alonso's replacement following Polanco's decision to sign a $40 million, two-year contract with the New York Mets.
“I was offering my services to teams as a first baseman, second baseman, third baseman, so when the Mets asked if I was able to do that, play a little bit of first, play a little bit third, I was definitely willing to do that,” Polanco said on a Zoom news conference.
Alonso, a fan favorite and a five-time All-Star, left the Mets as a free agent for a $155 million, five-year contract with Baltimore.
Asked whether he expects first base will be his primary position, Polanco responded: “I would think so. ... They told me that I’d be playing a good amount of first base, but that I could also be bouncing around.”
A 32-year-old switch-hitter who has batted .260 against righties and .270 against lefties, Polanco was an All-Star with Minnesota in 2019 and set career bests two years later when he had 33 homers and 98 RBIs for the Twins.
He was primarily a shortstop through 2020 and then a second baseman from 2020-24. Last season, he started mostly at designated hitter for the Mariners, who came within one win of their first World Series trip.
Mariners bench coach Manny Acta and infield coach Perry Hill approached Polanco this year about preparing for time at first.
“It was very easy because I had already spoken to my agent about starting to work out at first and trying to become a more versatile baseball player,” Polanco said. “So when we approached them, they were essentially approaching us at the same time. So it was real easy and a really seamless transition.”
Polanco hit .265 with 26 home runs, 78 RBIs, 30 doubles and an .821 OPS in 138 games for Seattle last season, his second with the Mariners following a decade with Minnesota.
While he didn't get to start at first, he found work with the coaches invaluable.
“The biggest difference is the position that you get in to receive pickoffs,” he said. “That was the toughest transition for me because it’s very different from when you’re playing in the middle of the infield. But I think with my experience of playing second, short, third, it allows me to be an athlete and I think that my athleticism will help me while I’m playing first base.”
Hours after Polanco spoke with reporters, the Mets announced their deal with reliever Luke Weaver. The former New York Yankees right-hander agreed to a $22 million, two-year contract last week, subject to a successful physical.
“Over the past few seasons Luke has emerged as one of the most reliable leverage relievers in baseball and we’re excited to add him to our (bullpen),” Mets President of Baseball Operations David Stearns said in a news release. “Luke’s stuff, combined with his experience in high pressure situations in New York, sets him up well for success going forward.”
Weaver gets a $3 million signing bonus, payable upon the contract’s approval by Major League Baseball, and salaries of $8 million next year and $11 million in 2027.
AP MLB: https://apnews.com/hub/mlb
FILE - Seattle Mariners' Jorge Polanco walks to the dugout after a fly out against the Toronto Blue Jays during the fourth inning in Game 4 of baseball's American League Championship Series, in Seattle, Oct. 16, 2025. (AP Photo/Lindsey Wasson, File)
FILE - Seattle Mariners' Jorge Polanco reacts after hitting the game-winning RBI-single for J.P. Crawford to score during the 15th inning in Game 5 of baseball's American League Division Series against the Detroit Tigers, Friday, Oct. 10, 2025, in Seattle. (AP Photo/Lindsey Wasson, File)
FILE - Seattle Mariners' Jorge Polanco runs on his two-RBI double against the Los Angeles Angels during the first inning of a baseball game Saturday, Sept. 13, 2025, in Seattle. (AP Photo/John Froschauer, File)
FILE - Seattle Mariners' Jorge Polanco hits a solo home run off Detroit Tigers starting pitcher Tarik Skubal during the sixth inning in Game 2 of baseball's American League Division Series, Sunday, Oct. 5, 2025, in Seattle. (AP Photo/John Froschauer, File)
