White House budget director Russell Vought said earlier this month that he intends to close the U.S. Consumer Financial Protection Bureau (CFPB) within months, even as the administration maintains in court filings that no such plan exists. His remarks come amid ongoing litigation between the administration, the CFPB’s labor union, and consumer advocacy groups over whether the president has the authority to dismiss most bureau employees or dismantle an agency created by Congress.
Vought claimed that only a small number of staff remain at the CFPB’s Washington headquarters “while we close down the agency,” adding that he expects the process to be completed within two or three months.
Congress established the CFPB after the 2008 financial crisis to curb predatory lending and strengthen oversight of consumer financial practices. The agency’s opponents have long accused it of exceeding its statutory powers, while supporters credit it with returning billions to consumers and preventing misconduct.
The administration has already curtailed enforcement activity and reduced supervision across several sectors. However, federal courts have questioned the legality of efforts to eliminate the agency entirely, with U.S. District Judge Amy Berman Jackson previously expressing doubt about the administration’s credibility in asserting that no closure is underway.
