Supreme Court agrees to resolve a legal challenge brought by business groups that claim that the Consumer Financial Protection Bureau’s decisions should be voided because Congress does not directly fund it. https://t.co/sUEyMyULPw

— NBC News (@NBCNews) February 27, 2023

The justices will hear a Biden administration appeal contesting a lower court ruling last year that said the mechanism allowing the Consumer Financial Protection Bureau to be funded directly by the Federal Reserve is unconstitutional.

The challengers, two trade groups representing lenders, argue that the agency must be funded with appropriations approved by Congress.

[Is this good news or bad news? The Supreme Court could have left that appellate ruling in place, which would have at least made precedent in the Fifth Circuit’s jurisdiction. Taking the case up could hint that there could be four votes to overturn the Fifth Circuit. It could also mean, however, that at least four justices want to settle the issue firmly and extend the precedent to the entire country. The fact that the court took up the challenge for the next term and not this term — rejecting a Biden administration request to expedite it — could hint it’s the latter. — Ed]