Trump Administration Proposes Slashing CFPB Workforce by Two-Thirds

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The Trump administration has developed a new plan to slash the workforce at the U.S. Consumer Financial Protection Bureau by about two-thirds, stepping back from earlier efforts to eliminate nearly 90% of all employees. Under the new proposal, the CFPB workforce would be reduced to 556 workers, eliminating 85% of positions in the Division of Supervision and 80% in enforcement.

Why it matters

The CFPB was created in 2010 to protect consumers from unfair, deceptive, or abusive practices in the financial sector. The proposed workforce cuts would significantly reduce the agency's ability to oversee banks and other financial companies, raising concerns about the administration's commitment to consumer protection.

The details

In a court filing, the Justice Department said the new plan shows the administration will not shut down the CFPB entirely, as a lower court had previously found. The administration had been battling in court to eliminate nearly all CFPB positions, arguing the agency was overly burdensome to companies. However, lawyers for an employee union and others had argued that such drastic cuts would prevent the CFPB from fulfilling its congressional mandate.

• The new workforce reduction plan was submitted to the U.S. Court of Appeals for the District of Columbia Circuit on Tuesday evening.
• The administration is seeking to lift a stay that is currently blocking it from carrying out the workforce cuts.

What’s next

The U.S. Court of Appeals for the District of Columbia Circuit will consider whether to lift the stay and allow the administration to implement the proposed CFPB workforce cuts.