On October 27, a group of 11 Democratic senators from the U.S. Senate Committee on Banking, Housing, and Urban Affairs sent a letter raising urgent concerns regarding comments made by CFPB Acting Director Russell Vought. Vought had publicly stated his intention to potentially “close down” the Consumer Financial Protection Bureau (CFPB) within a few months, a declaration that has sparked significant alarm among lawmakers. The senators described these remarks as particularly troubling given that a federal court has expressly blocked any leadership from shutting down the agency, reinforcing the stance taken by the administration in previous litigation that the CFPB would remain operational.
The letter referenced a preliminary injunction from a U.S. District Court ruling on March 28, which was intended to prevent the CFPB from making decisions affecting its employment, contracts, and facilities. Although the U.S. Court of Appeals for the District of Columbia Circuit ultimately vacated this injunction, the situation remains precarious, with the senators stressing the importance of keeping the agency functional.
Further exacerbating their concerns, the senators noted that Vought failed to request any funding for the CFPB during the fiscal year, an unprecedented move that complicates the Bureau’s ability to meet its mandated responsibilities.
In light of these issues, the senators posed three specific questions to Vought, demanding responses by October 31. Their inquiries centered on the current balances of the CFPB fund and the CFPB’s civil penalty fund, as well as any upcoming plans related to workforce reductions or the potential winding down of operations, underscoring the urgency of garnering clarity on the agency’s future direction.
This situation highlights ongoing tensions regarding the agency’s viability and the critical role it plays in overseeing consumer financial protection in the United States. As this situation unfolds, the senators seek to ensure that the CFPB remains fully operational and equipped to carry out its mission.