The Consumer Financial Protection Bureau (CFPB) has instructed its 1,700 employees to refrain from working or coming to the office this week. This decision follows directives from Russ Vought, who recently became the director of the White House Office of Management and Budget (OMB) and is also serving as the acting director of the CFPB.
Vought’s directive coincides with President Donald J. Trump’s broader push to reduce the size and scope of the federal workforce through various actions, including a buyout offer that encourages government employees to voluntarily resign and orders for nearly all United States Agency for International Development (USAID) workers to be put on leave. In a staff-wide communication, Vought explained that the CFPB’s Washington D.C. headquarters would remain closed and workers should not undertake any tasks unless approved. Employees are to seek permission for any urgent matters via Mark Paoletta, Chief Legal Officer.
Additionally, Vought announced he would not request new quarterly funding from the Federal Reserve, which typically finances the CFPB. The acting director revealed that the agency’s current balance is just over $711 million—implying the CFPB budget is already at adequate funding levels.
Mick Mulvaney, who previously held the roles of OMB director and acting CFPB director, noted that reducing the CFPB’s size was considered in Trump’s first term but not executed. He pointed out that the current administration appears more unified in its direction than it was from 2017 to 2021.
The CFPB was established during President Barack Obama’s tenure, ostensibly to prevent financial practices that contributed to the Great Recession. However, critics argue the agency’s powers are excessive and it lacks accountability.
Combined with the waste, fraud, and abuse investigations being undertaken by the Department of Government Effieicey (DOGE) and Elon Musk, the Trump White House hopes cutbacks can eliminate $2 trillion from the nearly $7 trillion federal budget.
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