The US Consumer Financial Protection Bureau (CFPB) is facing a crisis as President Donald Trump’s administration has allegedly shut down the agency, putting thousands of jobs at risk. However, lawyers for the Justice Department have denied these claims, stating that the White House intends to “streamline” the agency.
In court filings, the government acknowledged that it will need less office space and had canceled its lease for the headquarters building. Despite this, the CFPB has continued to operate some of its core functions, including a consumer complaint call center, database, and payments to consumers who were previously harmed by corporate misconduct.
The administration had nominated Jonathan McKernan, a former board member at the Federal Deposit Insurance Corporation, to be the next director of the CFPB. McKernan is due to testify in confirmation hearings this week. However, the White House had earlier stated that Trump planned to “totally eliminate” the agency, sparking concerns about the future of the CFPB.
The National Treasury Employees Union, which represents CFPB staff, has expressed fears that the agency will fire most of its remaining employees. The union is seeking a court order to halt efforts to destroy the agency. Despite these claims, the Justice Department maintains that the White House intends to preserve the CFPB’s core functions and continue to operate it as a “streamlined” entity.
The developments come amid growing concerns about the Trump administration’s plans for the CFPB. The agency has been a key player in regulating the financial industry and protecting consumers, but its future remains uncertain under Trump’s leadership.
Source: https://www.reuters.com/world/us/trump-admin-denies-plans-shutter-cfpb-court-papers-say-2025-02-25