Senators Address CFPB’s Vought on Funding and Comments
On October 27, a group of 11 Democratic senators from the U.S. Senate Committee on Banking, Housing, and Urban Affairs voiced their concerns regarding the Consumer Financial Protection Bureau (CFPB). They addressed Acting Director Russell Vought’s alarming remarks about potentially closing the CFPB in the near future.
Senators’ Concerns Over CFPB’s Future
The letter from the senators criticized Vought’s intention to “close down” the CFPB “within the next two or three months,” especially considering a federal court has already prevented such actions. The group pointed to prior statements from the administration affirming that the CFPB would remain operational, which raises significant concerns about the agency’s future.
Legal Context and Court Orders
The senators referenced a preliminary injunction issued on March 28 by the U.S. District Court for the District of Columbia. This order explicitly barred the CFPB from making decisions regarding employment, contracts, and facilities. Although this injunction was later vacated by the U.S. Court of Appeals for the District of Columbia Circuit, the initial ruling emphasized the need for transparency in the Bureau’s operations.
Funding Concerns Raised
In their letter, the senators highlighted that Vought did not request any funding for the CFPB during the last fiscal year. They described this inaction as “unprecedented,” indicating it hampers the Bureau’s ability to meet its legal obligations effectively.
Questions Posed to Acting Director Vought
The senators have requested that Vought respond to three critical inquiries by October 31:
- What are the current balances of the CFPB fund and the CFPB civil penalty fund?
- Are there any plans for reductions in force or winding down operations in the upcoming months?
- Can any relevant memoranda regarding such plans be provided?
This letter from the senators reflects growing apprehension regarding the CFPB’s operational stability and its future sustainability under the current administration. As they await responses, the fate of the Bureau remains uncertain.
