According to a report by Bloomberg, there were concerns among Trump allies, including Russell Vought, regarding the lack of discipline within DOGE, which could potentially undermine efforts to weaken the agency. Vought, who is the head of the Office of Management and Budget and acting director of the CFPB, was worried that the haphazard actions of Musk’s team could be legally challenged, allowing a strong CFPB to persist.
A spokesperson for Vought denied any tensions, calling the story “false” and attributing it to bias against DOGE.
Vought, a key figure in Project 2025 aimed at eliminating the CFPB, immediately halted the agency’s operations upon assuming power. He instructed staff to stop all supervisory and regulatory activities, as well as active litigation and internal communications.
Reports suggest that Musk’s team has terminated around 200 of the agency’s employees and restricted the remaining staff from working without clearance from a White House lawyer. There are concerns that DOGE officials, based in the agency’s basement, lack understanding of the agency’s functions.
The ongoing investigation into CFPB operations by DOGE coincides with the appointment of Mark Calabria, the former head of the Federal Housing Finance Agency (FHFA), as an interim director. Calabria is tasked with aligning independent agencies under the control of the Office of Management and Budget (OMB).
In an interview with HousingWire, Calabria expressed his belief that the CFPB will not be abolished, but there will be changes in enforcement and obligations. He highlighted the differences in approach between the Republicans and the Biden administration towards the agency.
Recently, a federal judge authorized the Trump administration to dismiss federal employees, including those at the CFPB and the Department of Veterans Affairs, with the case being referred to the Federal Labor Relations Authority.