Congress Should Control the Purse Strings, Not Un-Elected Bureaucrats
Community Financial Services Association of America v. CFPB
This week, the U.S. Supreme Court agreed to hear Community Financial Services Association of America v. CFPB, a case that has broad implications for separation of powers and the proper role of federal agencies in our system of government.
Of course, this has commenced the hand wringing from left’s propaganda outlet MSNBC.
As with most progressive left arguments, it rarely is based on law or the Constitution – more “this isn’t fair” whining. So let us review what the Supreme Court heard.
In Community Financial Services Association of America v. CFPB, the Court will consider whether the funding mechanism for the Consumer Financial Protection Bureau (CFPB) violates the Constitution’s Appropriation Clause.
As most Baby Boomers and Gen X learned in civics class (Millennials and Gen Z, I doubt you were taught civics), Congress holds the power of the purse, meaning that Congress alone must approve federal spending by law.
This provision is central to representative government and was included in the Constitution to restrain the growth of government and ensure that the branch closest to the people ultimately determines government priorities and can balance the excesses of the other branches. As Madison put it in Federalist 58, “The power of the purse may, in fact, be regarded as the most complete and effectual weapon with which any constitution can arm the immediate representatives of the people, for obtaining a redress of every grievance, and for carrying into effect every just and salutary measure.”
Yet, the CFPB is not funded by Congress. Instead, it receives money through earnings of the Federal Reserve System, and can, in effect, choose its own amount of annual funding. Thus, not only is the agency completely insulated from political accountability, but it is unique among executive agencies because even Congress cannot supervise its spending.
The Biden Administration lamented the Supreme Court’s decision to hear this case as an “unprecedented” attack on the CFPB, the brainchild of Elizabeth Warren. A writer for MSNBC described the Court’s decision as a Republican attempt to “kneecap” the agency. This is more feel good, shmaltzy, nonsense. Same legal “it’s not fair” arguments being used for student loan forgiveness.
The left likes unaccountable government agencies because they remove obstacles to achieving progressive goals. Congressional Democrats and Republicans have simply forsaken their appropriation duties and oversight. That is why liberal commentators and leftist politicians are so quick to dispense with Constitutional checks and balances, like the Appropriations Clause, which are intended to limit government power, and ensure that government officials remain responsive to the people.
The CFPB is responsible only to the bureaucrats in its hallways. Our framers wisely prohibited this result. And the Supreme Court’s decision to hear Community Financial Services Association of America v. CFPB is a hopeful sign that the Court will uphold the constitutional guarantee that ours is a government of, by, for, and accountable to, the people.
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