A congressional watchdog agency is investigating President Donald Trump’s efforts to dismantle the Consumer Financial Protection Bureau (CFPB), as reported by CNN. This investigation comes after Senate Democrats requested that the Trump-appointed acting director provide information on how the bureau can meet its statutory obligations while planning to lay off nearly 90% of its staff.
Courts have also intervened, with an appeals court ruling that no mass layoffs can occur at the bureau while it reviews a lawsuit challenging Trump’s dismantling efforts. The CFPB was established by Congress in 2010 following the 2008 financial crisis to protect consumers from predatory or fraudulent practices and oversee the financial services industry. Republicans have long criticized the bureau, arguing it exceeds its mandate and duplicates work done by other agencies.
Trump vowed to dismantle the CFPB during his 2024 campaign. Earlier this month, Massachusetts Senator Elizabeth Warren, who helped create the agency, joined New Jersey Senator Andy Kim in asking the US Government Accountability Office (GAO) to investigate the administration’s actions against the CFPB. The GAO has confirmed it will proceed with this review.
Meanwhile, 40 Senate Democrats have asked acting Director Russ Vought for a detailed plan on how the agency will fulfill its 80+ congressionally assigned tasks with only 200 employees remaining after nearly 90% of the staff is cut. They argue it’s impossible for the CFPB to perform all its required functions with such a reduced workforce.
The DC Circuit Court of Appeals has paused mass terminations while reviewing the ongoing legal challenge filed by unions and consumer advocacy groups. The administration claims its layoff plans comply with the law and court orders.
— new from CNN