Trump Administration Faces Lawsuit Over Alleged Dismantling of CFPB

Court filings reveal plans to gut the consumer watchdog, with mass layoffs and halted operations raising legal and data security concerns.

The Department of Government Efficiency (DOGE) and acting CFPB Director Russell Vought are accused of planning to fire 95% of the agency's staff and halt core functions.
A federal judge has temporarily blocked further layoffs after employees and the Treasury Employees Union filed legal challenges claiming illegal actions to dismantle the CFPB.
Court declarations detail a three-phase plan to reduce the CFPB to just five employees, effectively eliminating its ability to enforce consumer protection laws.
Concerns have been raised about the loss of critical data, including consumer complaints and sensitive personnel records, due to abrupt contract terminations and inadequate data preservation measures.
The Trump administration argues these actions are part of efforts to streamline the agency, but employees and legal filings suggest the intent is to render it nonfunctional.