Office of Management and Budget Director Russell Vought issued a series of directives to Consumer Financial Protection Bureau (CFPB) employees, effectively halting a large portion of the bureau’s activity. Vought, acting as the head of CFPB, instructed employees to cease supervision and examination activities, stakeholder engagement, and pending investigations. He also ordered a pause on public communications, enforcement actions, and the approval of rules and guidance.
In a post, Vought notified the Federal Reserve that CFPB would not be taking its next draw of funding, citing an excess of $711.6 million. Senator Elizabeth Warren criticized Vought’s directives, accusing him of giving big banks and corporations the ability to scam families. A current CFPB employee described the situation as leaving American families vulnerable to financial abuse.
Vought, who was confirmed as OMB director and replaced Treasury Secretary Scott Bessent as acting head of CFPB, aims to consolidate agencies in Trump’s second term. Musk’s advisory body has focused on slashing government size, causing agencies like USAID and CFPB to come under scrutiny. Trump suggested Secretary of State Marco Rubio could take charge of USAID, following Rubio’s halt to almost all foreign aid.
Republicans have long targeted CFPB to limit its regulatory powers, with efforts to reduce the agency’s workforce. Established in 2011 as a result of the Dodd-Frank Act, CFPB aims to increase consumer protections and corporate accountability. The OMB’s directives have drawn criticism and raised concerns about the bureau’s ability to fulfill its mission of safeguarding consumers.
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