Trump Administration’s Moves Leave Consumer Watchdog CFPB 'Hanging by a Thread'
One year into President Trump's second term, actions by his administration have left the Consumer Financial Protection Bureau weakened and "hanging by a thread." At the same time, the administration's defense strategy signals a shift toward asking U.S. allies to shoulder more of their own security responsibilities.
📌 Key Facts
- Trump appointed OMB Director Russell Vought as acting CFPB director in February 2025; he immediately ordered staff to halt all work and later closed offices.
- In April 2025, about 1,400 CFPB employees received layoff notices, which would have left roughly 200 staff, but a federal district judge issued a temporary injunction blocking the layoffs and record deletions while a union lawsuit proceeds.
- Congress nearly halved CFPB’s budget in July 2025 through the One Big Beautiful Bill Act, even though the bureau reported $19.7 billion returned to consumers as of Jan. 30, 2025.
- Vought helped author the conservative Project 2025 agenda that explicitly urges Congress to abolish the CFPB and has publicly accused agency staff of "weaponizing" financial law against small lenders.
- Current and former employees describe being paid to sit at home "staring at [their] computer screens" unable to do the enforcement and supervision work the bureau was created to perform.
📰 Source Timeline (2)
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January 24, 2026
January 21, 2026