Sen. Elizabeth Warren (D-Mass.) on Wednesday accused the White House of trying to dismantle the nation's consumer watchdog, seizing on comments from White House budget director Russell Vought that the administration aims to close the Consumer Financial Protection Bureau within months.
Warren Says OMB Seeks CFPB's Swift Demise
Warren said the Office of Management and Budget is "trying to kill the agency holding them accountable," as the government shutdown enters a third week and the administration pursues deeper cuts.
"Americans have gotten more than $21 billion back in their bank accounts after being cheated and scammed by big corporations, thanks to the CFPB. But Trump and his Administration love grifters and scammers. So they're trying to kill the agency holding them accountable,” Warren wrote on X.
Vought Outlines Aggressive Timeline To Close Bureau
As per a Reuters report, Vought, in an interview on "The Charlie Kirk Show," said very few people are working at CFPB's headquarters "while we close down the agency," adding, "We will be successful probably within the next two or three months." He argued the bureau had "weaponize[d] the tools of financial laws" against small lenders and wasn't protecting consumers.
Republicans Target Watchdog As Layoffs And Lawsuits Mount
The CFPB, created in response to the 2008 financial crisis, has long been a Republican target over what critics say is regulatory overreach. As per a separate Reuters report, since early this year, the administration has dramatically reduced the bureau's footprint, with plans affecting roughly 1,400 positions and litigation over mass layoffs that courts have alternately blocked and then allowed to proceed.
Consumer advocates from the Consumer Federation of America, in a press release that dates back to May 27, say officials have dismissed or withdrawn scores of enforcement actions against banks, credit bureaus and other firms, yet continue to target the CFPB with firings.
The watchdog closure push comes amid a wider effort to shrink the federal workforce during the shutdown. Vought has said layoffs across agencies could reach "north of 10,000," though a federal judge in California temporarily halted parts of the plan on Wednesday.
The administration has also floated a legal reading that furloughed workers aren't automatically guaranteed back pay, a sharp break from prior guidance.
Photo Courtesy: Bryan J. Scrafford on Shutterstock.com
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