- The Trump administration halted work at the Consumer Financial Protection Bureau, a consumer watchdog agency. But can the president shut down an existing government agency without Congress?
- “The Congress creates an agency by statute, and the President can go to Congress and ask for a new statute that would abolish the agency or fundamentally alter its purpose,” former White House ethics lawyer Richard Painter said.
- DOGE lead Elon Musk has had the agency in his sights for months, posting to X, “Delete CFPB,” and “CFPB RIP.”
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The Trump administration stopped all work at the Consumer Financial Protection Bureau over the weekend of Feb. 8. However, Democrats claim the action may not comply with the law.
Acting CFPB Director Russell Vought sent an email to the agency’s staff over the weekend announcing the new policy.
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…
— Russ Vought (@russvought) February 9, 2025
“Effective immediately, unless expressly approved by the Acting Director or required by law, all employees, contractors and other personnel of the bureau shall … cease all supervision and examination activity,” Vought said in an email viewed by several news organizations.
If they want to close the agency, go to Congress and convince Congress that you ought to close the agency.
Richard Painter, former White House ethics lawyer
“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,” Vought posted to X.
Can the president close an agency created by Congress?
Elizabeth Warren came up with the CFPB years before she was elected to the Senate. Congress created the agency through the 2010 Dodd-Frank Act in the wake of the 2008 financial crisis.
President Trump campaigned on lowering costs. But he’s letting billionaire Elon Musk and Project 2025 Architect Russ Vought kill the Consumer Financial Protection Bureau.
— Elizabeth Warren (@SenWarren) February 10, 2025
If they succeed, CEOs on Wall Street will once again be free to cheat you out of your savings. pic.twitter.com/XzLXyz7hDn
“Congress built the CFPB and no one other than Congress, not the president, not Musk, not Vought, can shut it down,” Sen. Elizabeth Warren, D-Mass., said in a video posted to X Monday, Feb. 10.
“I don’t think the president can do that at all,” Richard Painter, who served as the chief White House ethics lawyer for President George W. Bush, said. “The Congress creates an agency by statute, and the President can go to Congress and ask for a new statute that would abolish the agency or fundamentally alter its purpose.”
“If they want to close the agency, go to Congress and convince Congress that you ought to close the agency,” Painter said.
What other options does the president have?
“There is a lot the president can do, however,” Painter said. “The president has a lot of discretion to overhaul the way an agency is administered; the way the funds are handed out or what the priorities are. That’s all within the purview of the executive branch. But not simply abolishing the agency or refusing to spend all the appropriate funds.”
Painter said the fact that funding for the CFPB is allocated by the Federal Reserve instead of Congress doesn’t give the White House any more authority to stop its operations.
Painter added that Vought and the Trump administration do have a lot of power over what the agency chooses to enforce.
“We’ve had the CFPB ever since 2010 [with] the need to enforce the laws with respect to consumer lending,” he said. “So if the interpretation there is, ‘We’re going to stick to enforcing the law and investigating allegations of breach of the existing law in this consumer lending,’ I’m fine with that. That’s what the CFPB should be doing.”
What are people saying about CFPB?
Trump ally and Department of Government Efficiency lead Elon Musk has publicly criticized the financial regulator’s existence since the November election.
“Delete CFPB,” Musk wrote on X in November 2024.
CFPB RIP 🪦
— Elon Musk (@elonmusk) February 7, 2025
On Friday, Feb. 7, he celebrated CFPB’s demise, posting, “CFPB RIP.”
Sen. Chris Van Hollen, D-Md, took issue with Musk’s comment, posting that CFPB “is protected by law and we will fight to ensure it can continue to fight for consumers.”
“I am ringing the alarm bell. Elon Musk, and the guy who wrote Project 2025, Russ Vought, are trying to kill the Consumer Financial Protection Bureau,” Warren said Monday. “If they succeed, CEOs and Wall Street will once again be free to trick, trap or cheat you.”
“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,” Vought said on X.
During the early days of Trump’s first term, then-acting CFPB Director Mick Mulvaney also requested no new money for the agency.