Consumer watchdog left powerless under Trump
The Consumer Financial Protection Bureau (CFPB), once a powerful watchdog for U.S. consumers, has been effectively paralyzed for nearly six months under President Donald Trump’s second term, according to current and former employees.
Despite its doors remaining open and staff still on payroll, a White House directive has barred most CFPB employees from performing any work. Staff say they spend their days idle, unable to process complaints or oversee financial institutions, News.Az reports, citing AP News.
Under acting chief Russell Vought and oversight from the Department of Government Efficiency, the bureau’s primary focus has shifted to dismantling enforcement actions from prior administrations — including major consumer protection cases involving Navy Federal Credit Union and Toyota’s financing arm.
“It’s demoralizing,” said one anonymous staffer. “We’re being told to reverse-engineer ways to let companies off the hook.”
In contrast to the agency’s previous active enforcement under Biden-appointed director Rohit Chopra, the Trump administration has gutted its operations. A recent budget law cut the CFPB’s funding by half, paving the way for large-scale layoffs.
Senator Elizabeth Warren, who championed the bureau’s creation, called the move “an attack on consumers” and vowed to fight back.
But inside the CFPB, employees describe a grim reality of silence, stalled cases, and weekly departures. As one employee put it, “A 50% cut of nothing is still nothing.”
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