Consumer Financial Protection Bureau headquarters in Washington, D.C.
White House budget director Russell Vought said this week that the administration plans to shut down the CFPB within “two or three months,” intensifying uncertainty over the future of the agency that was created in the wake of the 2008 financial crisis.
Speaking on “The Charlie Kirk Show”, Vought said very few staff remain at the CFPB’s Washington headquarters “while we close down the agency,” reiterating Republican claims that the Bureau has persecuted small businesses and lenders rather than protecting consumers. His comments contradict the administration’s earlier legal arguments that no such plan existed as it fights lawsuits from the CFPB’s labor union and consumer advocates over mass firings and restructuring.
Since returning to office, President Donald Trump’s administration has gutted the CFPB, suspending enforcement actions, scaling back supervision of major financial sectors, and pushing to fire most of the agency’s staff. A federal judge has questioned the administration’s credibility after it previously denied closure plans in court.
The remarks have drawn renewed attention from financial industry stakeholders. The Defense Credit Union Council (DCUC) said the CFPB’s closure could be an opportunity to reform what many in the credit union sector view as burdensome and duplicative oversight.
“The Bureau’s one-size-fits-all approach often punishes responsible, member-owned credit unions that are already heavily regulated and mission-driven,” said Jason Stverak, DCUC chief advocacy officer. “From a credit union perspective, we already have a capable, independent regulator in the NCUA. We don’t need another layer of bureaucracy that adds confusion without adding value.”
Stverak said any CFPB reform or elimination should be paired with “restoring confidence in agencies that understand their jurisdictions and trusting credit unions to continue doing what they do best: serving their members with integrity, transparency, and heart.”
In a statement to CU Times, America's Credit Unions President/CEO said, "America’s Credit Unions is aware of recent reports regarding the future of the CFPB. While there has been no formal action taken, we will continue to closely monitor developments and engage leadership within the administration. Our priority remains ensuring that credit unions have the regulatory certainty they need to support their members and advancing commonsense reforms, including structural changes that would bring increased transparency and accountability to the CFPB. This allows credit unions to serve their 144 million members safely, securely, and effectively—consistent with their long-standing mission as consumer protectors.”
The CFPB has returned billions of dollars to consumers through enforcement actions since its founding, but its critics argue it has overstepped its authority. Congress would ultimately have to act to fully dissolve the agency, setting up a likely political and legal showdown.
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