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No, the White House can’t defund the CFPB, judge says, just days before agency would run out of cash

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The White House cannot lapse in its funding of the Consumer Financial Protection Bureau, a federal district court judge ruled on Tuesday, only days before funds at the bureau would have likely run out and the consumer finance agency would have no money to pay its employees.

Judge Amy Berman ruled that the CFPB should continue to get its funds from the Federal Reserve, despite the Fed operating at a loss, and that the White House’s new legal argument about how the CFPB gets its funds is not valid.

At the heart of this case is whether Russell Vought, President Donald Trump’s budget director and the acting director of the CFPB, can effectively shut down the agency and lay off all of the bureau’s employees. The CFPB has largely been inoperable since President Trump has sworn into office nearly a year ago. Its employees are mostly forbidden from doing any work, and most of the bureau’s operations this year has been to unwind the work it did under President Biden and even under Trump’s first term.

Vought himself has made comments where he has made it clear that his intention is to effectively shut down the CFPB. The White House earlier this year issued a “reduction in force” for the CFPB, which would have furloughed or laid off much of the bureau.

The National Treasury Employees Union, which represents the workers at the CFPB, has been mostly successful in court to stop the mass layoffs and furloughs. The union sued Vought earlier this year and won a preliminary injunction stopping the layoffs while the union’s case continues through the legal process.

In recent weeks, the White House has used a new line of argument to potentially get around the court’s injunction. The argument is that the Federal Reserve has no “combined earnings” at the moment to fund the CFPB’s operations. The CFPB gets its funding from the Fed through expected quarterly payments.

The Federal Reserve has been operating at a paper loss since 2022 as a result of the central bank trying to combat inflation, the first time in the Fed’s entire history its been operating at a loss. The Fed holds bonds on its balance sheet from a period of low interest rates during the COVID-19 pandemic, but currently has to pay out higher interest rates to banks who hold their deposits at the central bank. The Fed has been recording a “deferred asset” on its balance sheet which it expects will be paid down in the next few years as the low interest bonds mature off the Fed’s balance sheet.

Because of this loss on paper, the White House has argued there are no “combined earnings” for the CFPB to draw on. The CFPB has operated since 2011, including under President Trump’s first term, drawing on the Fed’s operating budget.

White House lawyers sent a notice to the court in early November, where they argued that the CFPB would run out of appropriations in early 2026, using the “combined earnings” argument, and does not expect to get any additional appropriations from Congress.

This combined earnings legal argument is not entirely new. It has floated in conservative legal circles going back to when the Federal Reserve started operating at a loss. The Office of Legal Counsel, which acts as the government’s legal advisors, adopted this legal theory in a memo on November 7. However, this idea has never been tested in court.

In her opinion, Berman said the OLC and Vought were using this legal theory to get around the court’s injunction instead of allowing the case to be decided on merits. A trial on whether the CFPB employees’ union can sue Vought over the layoffs is currently scheduled for February 2026.

“It appears that defendants’ new understanding of “combined earnings” is an unsupported and transparent attempt to starve the CPFB of funding and yet another attempt to achieve the very end the Court’s injunction was put in place to prevent,” Berman wrote in an opinion.

“We’re very pleased that the court made clear what should have been obvious: Vought can’t justify abandoning the agency’s obligations or violating a court order by manufacturing a lack of funding,” said Jennifer Bennett of Gupta Wessler LLP, who is representing the CFPB employees in the case.

A White House spokeswoman did not immediately respond to a request for comment on Berman’s opinion.



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‘Our beautiful Tatiana passed away this morning. She will always be in our hearts’: Kennedy family mourns yet another tragic death

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December 30, 2025

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Environmental journalist Tatiana Schlossberg, one of three grandchildren of the late President John F. Kennedy, has died after she was diagnosed with leukemia last year. She was 35.

Schlossberg, daughter of Kennedy’s daughter, Caroline Kennedy, and Edwin Schlossberg, revealed she had terminal cancer in a November 2025 essay in The New Yorker. A family statement disclosing her death was posted on social media Tuesday by the John F. Kennedy Library Foundation.

“Our beautiful Tatiana passed away this morning. She will always be in our hearts,” the statement said. It did not disclose a cause of death or say where she had died.

Schlossberg told of being diagnosed with acute myeloid leukemia in May 2024 at 34. While in the hospital for the birth of her second child, her doctor noticed her white blood cell count was high. It turned out to be acute myeloid leukemia with a rare mutation, mostly seen in older people.

In the essay, “A Battle With My Blood,” Schlossberg recounted going through rounds of chemotherapy and two stem cell transplants and participating in clinical trials. During the most recent trial, she wrote, her doctor told her “he could keep me alive for a year, maybe.”

Schlossberg also criticized policies pushed by her mother’s cousin, Health and Human Services Secretary Robert F. Kennedy Jr., in the essay, saying policies he backed could hurt cancer patients like her. Her mother had urged senators to reject his confirmation.

“As I spent more and more of my life under the care of doctors, nurses, and researchers striving to improve the lives of others, I watched as Bobby cut nearly a half billion dollars for research into mRNA vaccines, technology that could be used against certain cancers,” the essay reads.

Schlossberg had worked as a reporter covering climate change and the environment for The New York Times’ Science section. Her 2019 book “Inconspicuous Consumption: The Environmental Impact You Don’t Know You Have” won the Society of Environmental Journalists’ Rachel Carson Environment Book Award in 2020.

Schlossberg wrote in The New Yorker essay that she feared her daughter and son wouldn’t remember her. She felt cheated and sad that she wouldn’t get to keep living “the wonderful life” she had with her husband, George Moran.

While her parents and two siblings tried to hide their pain from her, she said she felt it every day. Her siblings, Rose and Jack Schlossberg, are JFK’s other grandchildren.

“For my whole life, I have tried to be good, to be a good student and a good sister and a good daughter, and to protect my mother and never make her upset or angry,” she said. “Now I have added a new tragedy to her life, to our family’s life, and there’s nothing I can do to stop it.”

Schlossberg’s mother Caroline was 5 years old when her father, President Kennedy, was assassinated in Dallas in 1963. She was 10 when her uncle, Robert F. Kennedy, was assassinated in Los Angeles in 1968 while he was running for president.

Caroline’s brother, John F. Kennedy Jr., died in 1999 when the single-engine plane he was piloting plunged into the Atlantic Ocean, near Martha’s Vineyard, Massachusetts. His wife, Carolyn, and her sister, Lauren Bessette, also died in the crash.

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Levy reported from Harrisburg, Pennsylvania, and Brumfield from Cockeysville, Maryland.

This story was originally featured on Fortune.com



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Meta claims ‘no continuing Chinese ownership interests in Manus AI’ after reported $2 billion deal to shore up in AI agent race

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December 30, 2025

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Meta is buying artificial intelligence startup Manus, as the owner of Facebook and Instagram continues an aggressive push to amp up AI offerings across its platforms.

The California tech giant declined to disclose financial details of the acquisition. But The Wall Street Journal reported that Meta closed the deal at more than $2 billion.

Manus, a Singapore-based platform with some Chinese roots, launched its first “general-purpose” AI agent earlier this year. The platform offers paid subscriptions for customers to use this technology for research, coding and other tasks.

“Manus is already serving the daily needs of millions of users and businesses worldwide,” Meta said in a Monday announcement, adding that it plans to scale this service — as Manus will “deliver general-purpose agents across our consumer and business products, including in Meta AI.”

Xiao Hong, CEO of Manus, added that joining Meta will allow the platform to “build on a stronger, more sustainable foundation without changing how Manus works or how decisions are made.” Manus confirmed that it would continue to sell and operate subscriptions through its own app and website.

The platform has grown rapidly over the past year. Earlier this month, Manus announced that it had crossed the $100 million mark in annual recurring revenue, just eight months after launching.

Some of Manus’ initial financial backers reportedly included China’s Tencent Holdings, ZhenFund and HSG. And the company that first launched the platform — Butterfly Effect, which also operates under the name monica.im, which was founded in China before moving to Singapore.

A Meta spokesperson confirmed on Tuesday that there would be “no continuing Chinese ownership interests in Manus AI” following its transaction, and that the platform would also discontinue its services and operations in China. Manus reiterated that it would continue to operate in Singapore, where most of its employees are based.

Meta CEO Mark Zuckerberg has been pushing to revive its commercial AI efforts as the company faces tough competition from rivals such as Google and OpenAI, maker of ChatGPT. In June, the company made a $14.3 billion investment in AI data company Scale and recruited its CEO Alexandr Wang to help lead a team developing “superintelligence” at the tech giant.

This story was originally featured on Fortune.com



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‘I opened her door and the wind caught me, and I went flying’: The U.S. Arctic air surge is sweeping northerners off their feet

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December 30, 2025

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A surge of Arctic air brought strong winds, heavy snow and frigid temperatures to the Great Lakes and Northeast on Tuesday, a day after a bomb cyclone barreling across the Midwest left tens of thousands of customers without power.

Blustery winds were expected to add to the chill, with low temperatures dipping below freezing as far south as the Florida panhandle, the National Weather Service said.

The wild storm hit parts of the Plains and Great Lakes this week with sharply colder air, strong winds and a mix of snow, ice and rain, leading to treacherous travel. Forecasters said it intensified quickly enough to meet the criteria of a bomb cyclone, a system that strengthens rapidly as pressure drops.

Kristen Schultz, who was heading home to Alaska, said it took her four hours to get to the Minneapolis airport on Tuesday.

“Just give yourself plenty of extra time and that way, even if things go smoothly, you don’t have to be stressed out,” she said, “and you’re ready in case things don’t go so smoothly.”

Nationwide, more than 115,000 customers were without power Tuesday morning, around a third of them in Michigan, according to Poweroutage.us.

As the storm moves into Canada, the frigid air trailing behind it will spread across much of the eastern two-thirds of the country, the National Weather Service said, powering the lake-effect “snow machine” in areas downwind of the Great Lakes.

Some areas in western and upstate New York saw a foot or more of snow Monday and their totals could reach up to 3 feet (91 centimeters) this week, forecasters said. Strong winds on Monday, including an 81 mph (130 kph) gust in Buffalo, New York, knocked down trees and wires across the region, the weather service said.

“At this point, the worst does seem to be over, and we are expecting conditions to improve especially by later today,” said Andrew Orrison, a weather service meteorologist.

Videos on social media show people struggling to walk in the windy conditions and a waterway in downtown Buffalo clogged with tree branches and other debris stemming from a windblown surge from Lake Erie.

Just south of Buffalo in Lackawanna, Diane Miller was caught on video being blown off the front steps of her daughter’s house and landing in some bushes. She wasn’t seriously hurt.

“I opened her door and the wind caught me, and I went flying,” Miller told WKBW-TV.

Whiteout conditions were still possible in some areas, forecasters said, and New York Gov. Kathy Hochul warned people in impacted areas to avoid unnecessary travel.

The fierce winds on Lake Erie had sent water surging toward the basin’s eastern end near Buffalo while lowering water on the western side in Michigan to expose normally submerged lakebed — even the wreck of a car and a snowmobile.

Kevin Aldrich, 33, a maintenance worker from Monroe, Michigan, said he has never seen the lake recede so much and was surprised Monday to spot remnants of piers dating back to the 1830s. He posted photos on social media of wooden pilings sticking up several feet from the muck.

“Where those are at would typically be probably 12 feet deep,” or 3.6 meters, he said. “We can usually drive our boat over them.”

Dangerous wind chills across parts of North Dakota and Minnesota plunged as low as minus 30 F (minus 34 C) on Monday. And in northeast West Virginia, rare nearly hurricane-force winds were recorded on a mountain near Dolly Sods, according to the National Weather Service.

On the West Coast, strong Santa Ana winds with isolated gusts topping 70 mph (112 kph) brought down trees in parts of Southern California where recent storms had saturated the soil. Downed powerlines forced the shutdown of a freeway north of Los Angeles for several hours on Monday. Wind advisories had expired by evening, but blustery conditions were expected through Saturday, along with thunderstorms.

Rain on New Year’s Day could potentially soak the Rose Parade in Pasadena for the first time in about two decades.

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Associated Press writers Julie Walker in New York; Leah Willingham in Concord, New Hampshire; Jeff Martin in Kennesaw, Georgia; and Susan Haigh in Norwich, Connecticut, contributed.



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