Trump Administration Shutters CFPB in Controversial Move

The Trump administration, led by the newly appointed chief Russell Vought, has closed the U.S. Consumer Financial Protection Bureau, affecting 2,000 workers. The abrupt closure raises concerns of diminished consumer protection, as Elon Musk's Department of Government Efficiency seizes control. A federal lawsuit challenges this potentially unconstitutional action.

President Donald Trump's administration, with Russell Vought now at the helm of the U.S. Consumer Financial Protection Bureau (CFPB), has instructed the agency's employees to cease all work, effectively idling a federal watchdog responsible for enforcing consumer protection laws.

The move, following a decision to shutter the CFPB headquarters, highlights escalating efforts by the Trump administration to diminish the agency's regulatory powers. Elon Musk's Department of Government Efficiency has taken control of the CFPB's computer systems, reportedly aiming to neutralize the agency's oversight role entirely.

The drastic measure has spurred significant backlash from Democratic lawmakers, progressive groups, and the CFPB employees' union, which have vowed to challenge this decision. A lawsuit filed by the National Treasury Employees Union claims Vought's actions violate the Constitution by undermining congressional authority.

(With inputs from agencies.)