The new acting director of the Consumer Financial Protection Bureau has told the Federal Reserve to halt funding for the bureau and ordered staff to pause all activities. The announcement came after Elon Musk on X suggested the CFPB would be eliminated.
The CFPB is unique among federal agencies in that its funding comes directly from the Fed based on a request from the bureau’s director. Russ Vought, the recently confirmed director of the Office of Management and Budget, is currently acting CFPB director, assuming the acting position Friday from Treasury Secretary Scott Bessent, according to news reports. On Saturday, Vought announced on X that he informed the Fed that CFPB will not be taking its next draw of funding because it is not “reasonably necessary” to carry out its duties.
“The bureau’s current balance of $711.6 million is in fact excessive in the current fiscal environment,” Vought said. “This spigot, long contributing to CFPB’s unaccountability, is now being turned off.” Also, in a separate post, Vought claimed the bureau “has been a woke and weaponized agency against disfavored industries and individuals for a long time.”
NBC News reported that Vought sent a memo to CFPB employees ordering them to suspend all supervision, investigations and enforcement actions. The directive came only two days after Musk, who is leading the Trump administration’s effort to trim federal spending, posted on X, “CFPB RIP.” Musk previously pledged to “delete” the bureau.
A Wall Street Journal report indicated that the bureau’s staff has been informed that its Washington, D.C., headquarters will be closed this week.
The CFPB was created by Congress following the 2008 financial crisis and it is unclear whether President Trump has the authority to unilaterally eliminate the agency, should he choose to do that. In an X post, Sen. Elizabeth Warren (D-Mass.) — who is the chief architect of the bureau — said that Vought “is giving big banks and giant corporations the green light to scam families.”
