The decision cleared away a major cloud that had slowed the CFPB’s momentum on rulemaking and enforcement. In both the Texas and Kentucky lawsuits, for example, the agency had been ordered to halt implementation of its Section 1071 rule while the funding issue was before the high court.
The CFPB has since pushed back the rule’s compliance deadlines by nearly 10 months — until July 2025 at the earliest — to make up for the delay.
In the meantime, the CFPB has also begun moving to resume a number of other enforcement-related lawsuits that had been held up by the funding issue. With the agency’s active caseload set to swell, CFPB officials have said they are staffing up with additional personnel to help handle the work.
Tuesday’s motion did not argue that the CFPB needs a stay to avoid being stretched too thin. But the CFPB did say it would be more efficient for everyone if the more advanced Texas case was allowed to play out first and then the Kentucky case could follow “with the benefit of the Texas judgment.”
