CFPB Acting Director Tells Staff to Stop Work; NTEU Sues

CFPB Acting Director Russell Vought, who is also the head of the Office of Management and Budget, told the CFPB "to stop work on proposed rules, to suspend the effective dates on any rules that were finalized but not yet effective, and to stop investigative work and not begin any new investigations."

Reportedly, Mr. Vought told employees and contractors to "cease all supervision and examination activity" and "to work remotely unless instructed otherwise."

Mr. Vought also posted on X: "Pursuant to the Consumer Financial Protection Act, I have notified the Federal Reserve that CFPB will not be taking its next draw of unappropriated funding because it is not 'reasonably necessary' to carry out its duties. The Bureau's current balance of $711.6 million is in fact excessive in the current fiscal environment. This spigot, long contributing to CFPB's unaccountability, is now being turned off." 

The National Treasury Employees Union ("NTEU") sued the Acting Director in the US District Court for the District of Columbia, on behalf of the employees of the agency, alleging that the actions taken by Mr. Vought violated "separation of powers principles," and asking a judge to declare the actions unlawful and to enjoin him from further attempts to halt the CFPB's supervision and enforcement work.