Russell Vought, now serving as the acting head of the Consumer Financial Protection Bureau (CFPB), issued a series of directives to employees on Saturday night. These orders effectively brought a significant portion of the bureau’s operations to a halt.
In an email sent to CFPB employees, Vought confirmed that he had assumed the role of acting head of the bureau. He also announced a series of twelve directives that would take effect right away, signaling a shift in the bureau’s operations, reported NBC News.
The email, sent late Saturday night, directs all CFPB staff to halt “all supervision and examination activity” as well as “all stakeholder engagement” with immediate effect. This move marks a significant shift in the bureau’s operations, freezing key functions until further notice.
In his internal email, Vought further emphasized that, unless given direct approval by him or required by law, all CFPB employees, contractors, and other personnel are to refrain from issuing any proposed or final rules, opening any new investigations, or making any public statements. This directive effectively halts several key functions within the bureau unless otherwise authorized.
The agency’s website is currently showing an error message, and in addition, its X account has been taken down, further signaling disruptions in its online presence.
On Saturday night, Vought also shared a post on X revealing that he had notified the Federal Reserve, which is responsible for U.S. monetary policy, about the CFPB’s decision to forgo its next draw of unappropriated funding. He clarified that this step was taken because the funding was considered “not ‘reasonably necessary’ to carry out its duties,” reflecting a significant shift in how the bureau will manage its resources moving forward.
On Friday, Elon Musk had tweeted “CFPB RIP,” signaling his apparent stance on the Consumer Financial Protection Bureau.
Vought, confirmed as OMB director on Thursday despite significant opposition from Senate Democrats, has stepped into the role of acting head of the CFPB, taking over from Treasury Secretary Scott Bessent. This change comes amid a shift in leadership and priorities at the bureau.
The Consumer Financial Protection Bureau (CFPB) is a regulatory agency that was established by law in the aftermath of the 2008 financial crisis to ensure greater accountability and transparency in the financial system.
Since its inception in 2011, the agency reports that it has returned nearly $21 billion to American consumers, helping to safeguard their financial rights and mitigate harmful practices within the industry.
