White House Official Announces CFPB Closure Plan
White House budget director Russell Vought has announced plans to close the U.S. Consumer Financial Protection Bureau within the next two to three months, according to reports from Reuters. The declaration comes despite the Trump administration’s previous court arguments that there was no plan to dismantle the agency.
Contradictory Statements and Legal Battles
Sources indicate that Vought made these remarks during an appearance on “The Charlie Kirk Show” while the administration remains engaged in litigation with a CFPB labor union and consumer advocates. The legal battle centers on whether President Donald Trump has the authority to fire most CFPB staff or dismantle an agency created by Congress.
The report states that Vought claimed very few people currently work at the CFPB’s Washington headquarters “while we close down the agency.” This statement directly contradicts the administration’s previous court positions, where officials argued they did not plan to close the agency entirely.
Political Controversy Surrounding Consumer Protection
According to the analysis, Vought repeated Republican allegations that the agency had “persecuted small businesses but failed to protect consumers.” He reportedly claimed the CFPB had weaponized financial laws “against basically small mom-and-pop lenders and other small financial institutions.”
The CFPB was created by Congress following the 2008 financial crisis to combat predatory lending and other harmful practices in consumer finance. Analysts suggest the agency has been a longstanding target for Republican critics who accuse it of exceeding its legal authority, while defenders argue it has returned billions to harmed consumers.
Administration’s Pattern of CFPB Opposition
The Trump administration has repeatedly sought to reduce the CFPB’s influence since taking office, according to reports. After taking control of the agency in February, President Trump stated it should be eliminated outright. The administration has also scrapped numerous enforcement actions and court cases while suspending oversight of major sectors of consumer financial services.
Legal experts suggest the administration’s credibility on this matter has faced judicial scrutiny. In a March legal opinion, U.S. District Judge Amy Berman Jackson reportedly expressed doubts about the administration’s statements regarding its intentions for the agency.
Recent Agency Activity Amid Closure Plans
Despite the announced closure plans, sources indicate the CFPB has maintained some official operations in recent months, including:
- Continuing a lawsuit against credit bureau Experian
- Developing internal plans for resuming supervision activities
- Initiating process to rework regulations governing personal data use in financial technology
The reporting on this developing situation comes from Reuters content licensing and follows broader patterns in regulatory changes affecting financial services strategy and emerging financial services expansions. The situation also parallels other international regulatory developments, including Canada’s recent legal actions against major corporations.
This coverage is based on reporting from Reuters and represents news aggregation rather than original investigation. All claims and statements are attributed to the source material and official statements.
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