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In a sweeping move that effectively paralyzes the Consumer Financial Protection Bureau (CFPB), Acting Director Russell Vought issued a series of directives Saturday night, bringing enforcement, supervision, and regulatory activities to a standstill. The move has sparked fierce backlash from consumer advocates and lawmakers, who accuse the Trump administration of gutting crucial financial protections for American families.
In an internal email obtained by NBC News, Vought, who was confirmed as the Director of the Office of Management and Budget (OMB) just days ago, announced his new role as acting head of the CFPB. Effective immediately, he ordered employees to cease all enforcement actions, supervision activities, and stakeholder engagement. He also froze pending investigations and prohibited the issuance of any new rules or guidance.
“CFPB will not be taking its next draw of unappropriated funding because it is not ‘reasonably necessary’ to carry out its duties,” Vought wrote on X, formerly Twitter. “This spigot, long contributing to CFPB’s unaccountability, is now being turned off.”
The CFPB, established in 2011 following the 2008 financial crisis, was designed to protect consumers from predatory financial practices. Its regulatory authority has long been a target of Republican lawmakers and business interests, who argue it wields too much unchecked power.
Senator Elizabeth Warren (D-Mass.), who played a key role in creating the CFPB, blasted Vought’s actions, calling them a gift to corporations looking to exploit consumers.
“Russell Vought is giving big banks and giant corporations the green light to scam families,” Warren said. “Republicans have failed to gut the CFPB in Congress and in the courts. They will fail again.”
A CFPB employee, speaking on condition of anonymity, described the situation as a deliberate effort by the Trump administration and Elon Musk’s Department of Government Efficiency (DOGE) to dismantle consumer protections.
“They’re pulling hundreds of examiners out of the field — the people who make sure your grandmother isn’t getting ripped off by scammers and your kid isn’t being deceived by predatory student lenders,” the employee said.
Musk himself signaled support for the move, posting on X: “CFPB RIP” with a tombstone emoji. Shortly after, the agency’s official X account disappeared, and its website went dark, displaying an error message.
The freeze at the CFPB is the latest in a broader effort by the Trump administration to shrink the federal government. The Department of Government Efficiency, spearheaded by Musk, has already targeted the U.S. Agency for International Development (USAID), leading to mass staffing cuts and a halt to foreign aid programs.
With the CFPB now in limbo, consumer advocates warn that millions of Americans will be left vulnerable to financial exploitation.
“This is a direct attack on working families,” said Craig Lindwarm, senior vice president of the Association of Public and Land-Grant Universities. “The CFPB was created to prevent another financial crisis, and now it’s being dismantled from the inside.”
As legal challenges loom, Democrats vow to fight back against the administration’s latest attempt to weaken financial regulations. However, with Republicans controlling Congress, reversing the damage may prove difficult.
