Office of Management and Budget Director, Russell Vought, issued a series of directives to Consumer Financial Protection Bureau employees, effectively halting a large portion of the bureau’s activities. In an email obtained by NBC News, Vought confirmed his new role as acting head of the bureau and announced twelve immediate directives. These directives included a halt to supervision and examination activities, stakeholder engagement, pending investigations, and enforcement actions. Vought also instructed employees to suspend the issuance of rules, guidance, and enforcement actions. Additionally, he notified the Federal Reserve that the CFPB would not be drawing unappropriated funding as it was deemed unnecessary.
Senator Elizabeth Warren criticized Vought’s directives, accusing him of allowing big banks and corporations to exploit families. A current CFPB employee described the situation as leaving American families vulnerable to financial abuse. Vought replaced Treasury Secretary Scott Bessent as acting head, who had been accused of implementing an illegal stop work order. Mick Mulvaney’s dilution of the bureau’s regulatory powers during Trump’s first term has created concerns about the consolidation of government agencies in his second term. The CFPB, along with other agencies, has been targeted for staff reductions and work stoppages under Musk’s Department of Government Efficiency.
Efforts to curtail the USAID’s activities have also been met with backlash, with Secretary of State Marco Rubio overseeing the freeze in humanitarian aid abroad, which was paused by a federal judge. The CFPB was established in 2011 to increase consumer protections and corporate accountability following the Great Recession. The ongoing efforts by Trump and Republicans to rein in the CFPB’s regulatory powers have faced intense criticism and legal challenges.
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