On Saturday evening, Russell Vought, the acting director of the Consumer Financial Protection Bureau (CFPB) in the United States, instructed agency staff to cease all activities, including suspending oversight of relevant companies, as part of the new government’s efforts to reduce government regulation.
According to a memorandum seen by Reuters, newly appointed Acting Director of the Office of Management and Budget (OMB) and Acting Director of the CFPB, Vought issued instructions on Saturday evening directing the CFPB to halt supervision of companies under its purview.
On Saturday night, Vought also announced on the social media platform X, owned by Elon Musk, that he would cancel funding for the CFPB for the next fiscal quarter, stating that the existing over $700 million in cash on hand was sufficient.
The Office of Management and Budget did not immediately respond to Reuters’ requests for comment, and the Consumer Financial Protection Bureau did not respond to comment requests either. Vought instructed the CFPB to cease external communications.
In the memorandum issued on Saturday, Vought ordered staff to “halt all supervision and examination activities,” going further than the directive issued by Treasury Secretary Scott Bessent last week. After the dismissal of former CFPB Director Rohit Chopra, Trump briefly placed Bessent in charge of the agency.
Established by the US Congress in 2008 after the financial crisis, the Consumer Financial Protection Bureau oversees financial companies that cater to consumers, including banks, mortgage lenders, and money transfer services, to prevent unfair, deceptive, abusive, and other predatory practices.
Vought’s new directive temporarily exempts many business activities from federal government oversight.
On Sunday, Vought posted again on X, stating that the CFPB had been “weaponized” in the past to combat “unwelcome” individuals and industries.
“This must end,” he expressed in the post.