Trump administration lawyers deny plans to dismantle consumer watchdog

The Trump administration denied allegations Monday that it aims to dismantle the Consumer Financial Protection Bureau (CFPB).

Government lawyers said in a new court filing that the consumer watchdog will continue to exist, as an employee union and other groups seek to halt what they have described as the “wholesale dismantling” of the agency.

“Remarkably, the CFPB employee groups and other Plaintiffs now spin these actions and others as being part of a ‘coordinated campaign by the new administration to eliminate the’ CFPB,” Justice Department lawyers wrote.

They pointed to Trump’s recent decision to nominate Jonathan McKernan, a former board member of the Federal Deposit Insurance Corporation (FDIC), to serve as CFPB director, and acting director Russell Vought’s intention to “run a substantially more streamline and efficient bureau.”

“The predicate to running a ‘more streamlined and efficient bureau’ is that there will continue to be a CFPB,” the DOJ added.

The assertion seemingly contradicts comments made by both President Trump and his close ally Elon Musk in recent weeks.

When asked in the Oval Office earlier this month whether his goal was to totally eliminate the CFPB, the president responded, “I would say yeah because we're trying to get rid of waste, fraud, and abuse.”

Musk, who has previously called to “delete” the consumer watchdog, also posted on his social platform X in early February, “CFPB RIP.”

The National Treasury Employees Union (NTEU), which represents CFPB workers, sued Vought earlier this month. Shortly after he took over as acting director, Vought ordered employees to halt all work and laid off dozens of staff, sparking fears about the agency’s future.

After the union raised concerns that the administration was preparing to conduct mass layoffs and potentially delete the agency’s data, the DOJ agreed to a court order temporarily barring officials from firing staff without cause and deleting or removing data.

However, the government argued Monday that the court should not grant a longer-term injunction, calling the union’s demands “breathtaking in scope” and contending that the CFPB is still meeting its statutory responsibilities.

Topics

Oversight Democrats warn Trump on plans to 'dismantle' Postal Service

Democratic members of the House Oversight Committee on Saturday urged President Trump to abandon plans to reform the U.S. Postal Service (USPS) after he said he was considering a “merger” for the ...
The Hill - 3d
U.S. Consumers Are Increasingly Worried About Trump’s Tariff Plans

The Consumer Sentiment Index hit its lowest reading since November 2023.
Inc. - 4d
Judge denies bid to block Trump administration from placing USAID workers on leave

President Trump has targeted the U.S. Agency for International Development as part of his plan to shrink the size of the federal government.
CBS News - 4d
Could Elon Musk benefit from DOGE cuts at consumer protection watchdog?

Earlier this month, President Trump fired Rohit Chopra, director of the Consumer Financial Protection Bureau. Lesley Stahl has more on the agency and the Trump administration's attempts to ...
CBS News - 3d
Morocco says it dismantled Islamic State cell that was planning attacks

Moroccan authorities have arrested a dozen people they said were planning attacks on behalf of the Islamic State in the Sahel
ABC News - 1d
Trump tariff threats rattle consumers

Welcome to The Hill's Business & Economy newsletter {beacon} Business & Economy Business & Economy The Big Story Consumer confidence dips in Trump’s first month A new survey found that ...
The Hill - 4d
Trump Dismantles Government Fight Against Foreign Influence Operations

Dozens of employees who had been working to fight foreign interference in U.S. elections have been reassigned or forced out, according to current and former officials.
The New York Times - 5d
Supreme Court Rejects, for Now, Trump’s Bid to Fire Government Watchdog

The court’s order indicated that it may return to the issue as soon as next week, when a trial judge’s temporary restraining order is set to expire.
The New York Times - 3d
Hegseth: Fired military lawyers were potential 'roadblocks' to Trump orders

Defense Secretary Pete Hegseth said Monday that the three fired judge advocates general (JAGs) were potential “roadblocks” to President Trump’s orders. "It's not about roadblocks to an agenda,” ...
The Hill - 1d