Uncertainty looms over the CFPB following a turbulent weekend
The Consumer Financial Protection Bureau (CFPB) has experienced a significant transformation under its new acting director, Russ Vought, who took office in February 2025.
Vought, who previously served as Director of the Office of Management and Budget, has reversed numerous prior Bureau actions, including dismissing enforcement actions with prejudice, withdrawing guidance, terminating consent order obligations, and rescinding rules implemented under previous administrations.
Notably, the CFPB under Vought settled its first enforcement action by finalizing a $9 million resolution involving alleged Military Lending Act violations, signaling continued albeit refocused enforcement activity. The Bureau is also actively revising major regulatory initiatives from the Biden era, such as the 2024 open banking rule, announcing plans for a substantial rewrite via an accelerated rulemaking process after a lawsuit was filed against that rule.
The organizational changes are just as significant. Following a budget slashing in half by Congress and a favorable Supreme Court ruling enabling the Trump administration to proceed with mass layoffs, Vought is expected to move forward imminently with a reduction in force that could eliminate up to 1,300 of the approximately 1,750 staff members the agency had as of February 2025.
The changes have not gone unnoticed. Rep. Maxine Waters and 80 House lawmakers wrote a letter expressing concern over the CFPB's actions and urging the agency to resume work. The lawmakers' concern is likely due to Elon Musk's expressed preference for the agency's demise.
On Friday, the CFPB's social media profile was deleted, and its central art on its webpage was replaced with a "404 error" text and a rudimentary illustration of an unplugged socket. Vought also expressed Republican rhetoric that the CFPB has been a "woke & weaponized agency" and that this must end.
However, the CFPB is not without resistance. The National Treasury Employees Union, which represents CFPB employees, filed two lawsuits on Sunday in a federal court in Washington to block Vought's directives and to keep DOGE from accessing employee records. Sen. Elizabeth Warren, the CFPB's architect, expressed opposition to the CFPB's current actions and stated that Republicans will fail again.
As the situation continues to unfold, it is clear that the Consumer Financial Protection Bureau is undergoing a profound shift in leadership style and policy direction. The future of the agency remains uncertain, with ongoing debates and legal challenges shaping its path forward.
[1]: Source for the timeline of Vought's appointment [2]: Source for the CFPB's actions under Vought [3]: Source for the debate over the CFPB's original consumer-protection emphasis [4]: Source for the expected staff reductions at the CFPB [5]: Source for the plans to rewrite the 2024 open banking rule
- The transformation of the Consumer Financial Protection Bureau (CFPB) under its new acting director, Russ Vought, has seen the agency refocus its activities in finance, business, and politics, with reversals of prior actions and revisions of major regulatory initiatives.
- The CFPB, under Vought's leadership, has faced resistance from various political quarters, including lawmakers and unions, as its new direction in general-news continues to unfold, sparking ongoing debates and legal challenges.
