Amidst the recent changes at the Consumer Financial Protection Bureau (CFPB), Russell Vought, the newly appointed acting director, has taken decisive actions. He has halted most of the bureau’s functions and cut off its funding from the Federal Reserve.
In a letter addressed to bureau staff on a Saturday night, Vought outlined the following directives:
- Stop any supervision activity that has not been authorized by the acting director.
- End the approval or issuance of any proposed or final rules or guidance.
- Suspend the effective dates of all final rules that have been issued but not enacted.
- Cease investigative activities related to enforcement actions.
- Stop opening new investigations or pending probes.
- Discontinue issuing any form of public communications, including research papers.
The CFPB’s funding is typically derived from the Federal Reserve system, rather than Congress. Vought has now terminated this funding and conveyed a message on his X account, stating, “The Bureau’s current balance of $711.6 million is in fact excessive in the current fiscal environment. This spigot, long contributing to CFPB’s unaccountability, is now being turned off.”
Vought was appointed as acting director of the bureau following his confirmation to lead the White House Office of Management and Budget.
These recent developments mark a turbulent week for the bureau, which saw the removal of its former director, Rohit Chopra, and subsequent changes in leadership.
Despite protests from Democratic members of Congress regarding the abrupt shutdown of bureau functions, the CFPB’s funding structure remains outside their jurisdiction. The bureau, established in 2011 after the financial crisis, has returned $20.7 billion to consumers, despite its 2025 budget of $823 million.
For more information on this topic:
- A timeline detailing the recent events at the CFPB under Trump’s administration
- An updated list of actions by Trump impacting housing
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