John Kennedy called out Joe Biden for this horrible illegal act

Cat2 / Politics

Treasurer Ron Henson from USA, CC BY 2.0, via Wikimedia Commons

You can add another notch to Joe Biden’s belt of scandals.

He’s blatantly operating outside the law.

And John Kennedy called out Joe Biden for this horrible illegal act.

Consumer Financial Protection Bureau funding dispute hits the Senate

Former President Barack Obama and the Democrats created the Consumer Financial Protection Bureau (CFPB) in the 2010 Dodd-Frank Act.

The CFPB was part of Obama’s socialist scheme to fundamentally transform America by crippling the banking and financial services sector through an oppressive regulatory regime.

Even since Obama signed Dodd-Frank into law, Republicans argued the CFPB existence relied on an illegal funding scheme which saw the Federal Reserve’s earnings fund the agency as opposed to Congress appropriating the money.

Republicans and business groups filed years of legal challenges to get the courts to overturn this unconstitutional scheme which would allow for the agency to fall apart.

Kennedy grilled CFPB Director Rohit Chopra on the illegal nature of his agency’s existence.

“For the longest time, the Federal Reserve was earning money, but that stopped in September 2022,” Kennedy began. 

The administration now funds the CFPB through the General Fund and Kennedy bemoaned a recent Supreme Court ruling upholding the convoluted funding two-step to avoid Congress.

“Now they are losing money. They don’t have any earnings. They’re no longer transferring earnings to the general fund, and the Supreme Court based its decision on saying, this funding scheme is Constitutional under the appropriations clause, by saying that these earnings would go to the general fund from the Federal Reserve so getting them directly from the general fund is no big deal,” Kennedy said.

John Kennedy calls out illegal funding scheme

Kennedy wanted to take his gripes out about the patently illegal funding plan with Director Chopra.

“How are you entitled to any money right now?” Kennedy wondered. 

“The Federal Reserve doesn’t have any earnings,” Kennedy added.

Chopra claimed this was a theory.

“You raise the difference between revenue and net income,” Chopra stated. 

“There are other places throughout our laws. I can tell you we’ve looked at this issue. We do believe wholeheartedly everyone is complying with the statute,” Chopra added.

Kennedy disagreed wholeheartedly and took offense to Chopra claiming he was only offering a theory.

“I know you don’t like to hear this, but the law is the law. You’ve been operating illegally,” Kennedy declared.

“No, that’s not true, sir,” Chopra exclaimed.

“We didn’t say revenue in the statute, we said earnings,” Kennedy fired back.

“How can you possibly argue that the Federal Reserve has had earnings? They’re losing money,” Kennedy concluded.

Obama and his socialist allies knew Republicans would oppose the CFPB.

They tried to insert trick language into Dodd-Frank to protect the agency’s funding from when Republicans would win a majority.

But the law is the law.

And funding the government runs through the Congressional appropriations process and not the executive branch moving money around.

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