Some 113 congressional Republicans are lending their support to the Trump Administration's effort to keep Mick Mulvaney as acting CFPB director, arguing in federal court that a challenge to the appointment is based on a misreading of federal law.

The 113, led by House Financial Services Chairman Jeb Hensarling (R-Texas) and Senate Banking Chairman Mike Crapo (R-Id.), contend that CFPB Deputy Director Leandra English's argument that she should be acting director “threatens Congress's prerogatives by upsetting the Constitution's finely calibrated balance between the President's appointment power and Congress's role in that process.”

Judge Timothy Kelly of the U.S. District Court for the District of Columbia, has ruled that Trump had the power to appoint Mulvaney and that a section of Dodd-Frank does not override that right.

Kelly ruled that English was not entitled to a restraining order stating that Mulvaney's appointment was illegal. He previously ruled that she was not entitled to a temporary injunction keeping Mulvaney from operating as acting director.

Mulvaney was Trump's choice to head the office on a temporary basis following the resignation of Director Richard Cordray.

In making the appointment, Trump relied on the Federal Vacancies Act, which provides for the temporary appointment of agency heads.

However, just before leaving office, Cordray appointed English as deputy director. English has argued that under Dodd-Frank the deputy director assumes the director's position in the absence or unavailability of the director.

English has now appealed the ruling to the U.S. Court of Appeals for the District of Columbia.

The Republicans contend that Dodd-Frank doesn't apply to the current situation, saying that its provisions discussing what happens when an agency head in unavailable do not apply to resignations.

And they say that Congress and the Executive Branch have recognized Mulvaney as acting director, adding that to void that appointment “would risk significant instability in the CFPB's operations by opening the door to a series of leadership changes in quick succession.”

Instant Insights /

Congressional Republicans Ask Federal Appeals Court to Keep Mulvaney at CFPB

Related Stories

Recommended For You