Trump CFPB Cuts: Fed IG Review
- The Federal Reserve's inspector general is examining the Trump administration's efforts too restructure the Consumer Financial Protection Bureau (CFPB), including potential mass firings and contract terminations.
- Acting Inspector General Fred Gibson confirmed in a June 6 letter that the review, initially focused on workforce reductions, would expand to include the CFPB's canceled contracts.
- the inquiry centers on actions taken after Russell Vought assumed leadership of the CFPB in February.
The Federal Reserve IG is investigating the Trump administration’s CFPB cuts, including potential mass layoffs and contract cancellations, a move spurred by Senators Warren and Kim. This is a developing story.The inquiry, confirmed by Acting Inspector General Fred Gibson, now expands to scrutinize the CFPB’s shuttered contracts, mirroring a simultaneous probe by the Government Accountability Office (GAO). The heart of the matter lies in actions taken after Russell Vought took over leadership. are these actions legal? News Directory 3 is following the story. What will the court decide on the appeal regarding CFPB staff reductions? Discover what’s next …
Federal Reserve Investigates Trump administration’s CFPB actions
Updated June 13, 2025
The Federal Reserve’s inspector general is examining the Trump administration’s efforts too restructure the Consumer Financial Protection Bureau (CFPB), including potential mass firings and contract terminations. This investigation follows requests from Sens. Elizabeth Warren, D-Mass., and Andy Kim, D-N.J.
Acting Inspector General Fred Gibson confirmed in a June 6 letter that the review, initially focused on workforce reductions, would expand to include the CFPB’s canceled contracts. The Government Accountability Office (GAO) also confirmed in April that it would investigate the matter.
the inquiry centers on actions taken after Russell Vought assumed leadership of the CFPB in February. Vought, along with figures from Elon Musk’s Department of Government Efficiency, reportedly sought to dismiss a large portion of the agency’s staff and terminate contracts with outside vendors, prompting concerns about the CFPB’s ability to protect consumers.
“As Trump dismantles vital public services, an self-reliant OIG investigation is essential to understand the damage done by this administration at the CFPB and ensure it can still fulfill its mandate to work on the people’s behalf and hold companies who try to cheat and scam them accountable,” Kim said.
The inspector general’s office has broad authority to review agency records, issue subpoenas, and interview personnel.It can also refer potential criminal matters to the Justice Department.
Michael Horowitz, currently the Justice Department’s inspector general, will soon take over as the watchdog for both the Fed and CFPB. Horowitz was reportedly praised by Trump supporters for his work uncovering issues related to the FBI’s investigation into Trump’s 2016 campaign.
What’s next
A federal appeals court is considering the Trump administration’s appeal regarding its plans for the CFPB, after temporarily halting Vought’s efforts to lay off employees. The court’s decision will considerably impact the future of the consumer financial protection bureau.