The Trump administration intends to maintain some version of the Consumer Financial Protection Bureau, but in a capacity more aligned with new efficiency mandates, according to a court filing by the acting director and first reported by Politico.
CFPB Acting Director Russ Vought on Monday filed a motion clarifying that "the predicate to running a more streamlined and efficient bureau is that there will continue to be a CFPB." The Trump administration and Elon Musk's DOGE initiative have sought to pause, reset and in some causes eliminate those federal agencies found to be rife with "waste, fraud and abuse."
Vought's motion was in response to the CFPB's union, which sued the administration after Vought closed the agency's Washington headquarters earlier in February. Vought told employees not to come into the office and to "not perform any work tasks."
After the lawsuit, employees protested outside the D.C. headquarters, claiming Vought's actions were part of "a coordinated campaign by the new administration to eliminate the CFPB." Vought's filing state's the administration's objective is to create a "more streamlined and efficient bureau."
"Incoming Presidents of both parties have routinely issued directives that pause policy-related decision-making to allow the reevaluation of those policies that were under consideration or under development but not finalized by the prior administration," Vought wrote in his filing, calling the lawsuit brought by employees "breathtaking in scope."
The CFPB was conceived by Sen. Elizabeth Warren, D-Mass., after the financial crisis of 2008. It was established in 2010 as part of the Federal Reserve System.
While advocates say it plays an important role in protecting consumers, critics argue it has overstepped its authority.
"For every student who wants to borrow money to go to school without getting defrauded, for every member of our military who doesn't want to get trapped by some sleazy pay-day lender, say it with me: This is your fight. Oh, and for every American who doesn't want some weird Elon Musk suck-up searching through your personal, private data, this is your fight," Warren said during the Washington protest.
Critics have warned pointed out a obvious conflict of interest in Musk advocating for shutting down an agency that seeks to regulate tech companies. Vought's filing noted that the employees and contractors were "expected to work remotely" during the office closure which was in response to various episodes of "extraordinary and disruptive nature" by the protesters.
"Because the public has an interest in ensuring that an agency can carry out its statutory duties in line with the policy priorities of the democratically elected administration, the public interest and balance of the equities tip in Defendants' favor," Vought's filing read.
James Morley III ✉
James Morley III is a writer with more than two decades of experience in entertainment, travel, technology, and science and nature.
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